Ukraine will not have to repay the $50B G7 loan until it receives reparations from the Russian Federation.

Ukrainian parliament members approved amendments to the Budget Code, which introduced a new concept in the budgetary sphere – conditional debt obligations. This establishes a special status for funds that Ukraine will receive from frozen Russian assets.

“The ‘non-refundable’ loan of $50B from the G7 countries and the EU is precisely such a conditional debt obligation because Ukraine will not repay this loan until it receives reparations from Russia,” explained the head of the Verkhovna Rada budget committee, Roksolana Pidlasa.

She added that this money will not be considered Ukraine’s state debt. Without amendments to the Budget Code, Finance Minister Serhiy Marchenko could not sign an agreement to receive the $50B from the G7. Now, the Ministry of Finance can sign the first agreement to receive funds from the $50B package next week.

In the future, transactions with contingent debt obligations within the framework of agreements with the EU, foreign states, and international financial institutions will be handled by the Debt Agency, which is to be created.