On December 5, 2024, Ukraine's Finance Minister Serhiy Marchenko signed an agreement to establish the Ukraine Loan Cooperation Mechanism (ULCM), aimed at facilitating the servicing and repayment of loans potentially reaching €45 billion.
The ULCM will allow the use of revenues from frozen Russian sovereign assets to cover the principal, interest, and other expenses related to loans obtained under the G7 ERA (Extraordinary Revenue Acceleration Loans for Ukraine) initiative.
Funds accessed through the ULCM will be earmarked exclusively for repaying relevant loans provided to Ukraine by creditors within the G7 ERA framework.
Previously, on December 4, Finance Minister Marchenko, National Bank of Ukraine Governor Andriy Pyshnyy, and European Commission Vice President Valdis Dombrovskis signed a memorandum of understanding and a loan agreement with the European Union for up to €35 billion in macro-financial assistance, which will also be provided under the new ULCM.