The promised $ 50 billion loan, which was to be allocated at the expense of frozen Russian assets, was threatened. According to Professor of Law and Economics of the Higher Commercial School of Paris Armin Steinbach in his Politico , this plan, which was initially conceived as a risk -free one for creditors from G7 countries, faces real difficulties.
Steinbach notes that the initial multilateral decision to support Ukraine through the use of frozen Russian assets is gradually falling apart. This is due to internal political differences between the Western countries and legal obstacles that affect the possibility of loan.
Currently, the position of Hungary has become a particularly acute problem, which declares the intention to veto long freezing of Russian assets. This is a key condition for allocating a loan planned to provide the US and the European Union. Without this agreement, hopes for the implementation of the program are significantly reduced.
The European Union is currently considering Ukraine's $ 40 billion on its own, but this loan will be recobeared. This means that if the income from frozen assets of Russia does not cover debt, the responsibility for its repayment will lie to Ukraine. Such a debt burden will be excessive for the Ukrainian economy, which has already suffered serious losses due to war.
In addition, there are fears that it can deprive Ukraine of access to new loans of the International Monetary Fund (IMF), which will further complicate the country's financial situation.
Steinbach summarizes that this credit plan had to become a symbol of the unity of the event in support of Ukraine, but instead it only demonstrates the growing differences among Western partners. If urgent measures are not taken, a $ 50 billion loan may not become a reality, leaving Ukraine in an even more difficult financial situation.
