Essence of the Act:
The Resolution approves the conditions for Ukraine to receive a loan from the United Kingdom amounting to 2.258 billion pounds sterling for the procurement of defense materials. A distinctive feature of the loan is that its repayment is planned to be carried out not from the state budget, but from frozen Russian assets in accordance with the EU mechanism.
Structure and Main Provisions:
1. The loan agreement is concluded between the Minister of Finance of Ukraine and the Treasury of the United Kingdom
2. The interest rate consists of a base rate (pegged to British government bonds) plus a margin of 1.25% per annum
3. Interest payments are made twice a year – on April 6 and October 6
4. The loan repayment term is 30 years from the date of contract conclusion
Key Features:
– The loan has a specific purpose – procurement of defense materials
– Repayment is primarily carried out from frozen Russian assets
– The creditor has limited right to demand return of funds from the state budget (only in case of receiving compensation from Russia or in case of significant breach of contract terms)
– The lending mechanism is implemented within the framework of a special EU Regulation and the corresponding Agreement between Ukraine and the EU
