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Law on Amendments to the Budget Code of Ukraine Regarding Transactions with Contingent Liabilities The Verkhovna Rada of Ukraine hereby enacts: I. Amend the Budget Code of Ukraine (Bulletin of the Verkhovna Rada of Ukraine, 2010, No. 50-51, p. 572; 2013, No. 5-6, p. 59; 2014, No. 22, p. 816; 2015, No. 22, p. 145; 2016, No. 16, p. 166, No. 23, p. 49; 2017, No. 2, p. 25, No. 38-39, p. 380; 2018, No. 1, p. 7; 2019, No. 17, p. 71, No. 46, p. 299; 2020, No. 5, p. 35, No. 43, p. 357; 2021, No. 13, p. 110, No. 16, p. 138, No. 39, p. 321; 2022, No. 5, p. 29, No. 16, p. 136, No. 22, p. 190) as follows: 1. In Article 2: a) paragraph 10 shall be amended to read as follows: “10) contingent liabilities are potential financial obligations that may arise in the future under certain conditions and depend on the occurrence or non-occurrence of certain events;” b) paragraph 11 shall be amended to read as follows: “11) contingent transactions are transactions involving contingent liabilities, which are carried out in accordance with the procedure established by this Code;” 2. Supplement Article 18 with paragraph 1-1 as follows: “1-1. The state budget may include provisions for contingent transactions and contingent liabilities in the manner prescribed by this Code.” 3. In Article 23: a) paragraph 2 shall be supplemented with subparagraph 9 as follows: “9) conditions and procedure for conducting contingent transactions;” b) paragraph 3 shall be supplemented with subparagraph 12 as follows: “12) approval of contingent liabilities and contingent transactions.” II. This Law shall enter into force from the date of its publication.

Law Amending the Budget Code of Ukraine Regarding Transactions with Contingent Liabilities Related to Financing from the EU, Foreign States, and International Financial Organizations, Including from Frozen Russian Assets

Structurally, the law amends Article 2 of the Budget Code, clarifying the concepts of ‘debt obligation’ and ‘public debt’, and supplements the Final Provisions with a new paragraph 35-1, which regulates the procedure for transactions with contingent liabilities.

Key Provisions of the Law:

• Granting the Debt Agency of Ukraine the right to perform transactions with contingent liabilities on behalf of the Minister of Finance

• Establishing a procedure for the Cabinet of Ministers to determine the main conditions of such transactions

• Possibility of providing limited rights for creditors to demand loan repayment from the state budget

• Obligation of the Debt Agency to maintain a Register of Transactions with Contingent Liabilities and publish relevant information monthly

• Right of the Head of the Debt Agency to undertake obligations on behalf of Ukraine, including waiving sovereign immunity in potential disputes

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