A $50 Billion Loan is Insufficient: Analysts on Frozen Russian Assets.

Frozen assets of RF: $50bn is not enough
Frozen assets of RF: $50bn is not enough

Ukraine received the first tranche from the income on frozen Russian assets from the EU. The total amount of the tranche is $1.55 billion. According to the EU High Representative for Foreign Affairs Josep Borrell, part of these funds will be directed to strengthening Ukraine's defense sector. Ukraine expects the second tranche of income to be provided by March. In the meantime, the EU states that it will continue providing loans to Ukraine regardless of the US position.

However, the process of mobilizing income from frozen assets may be delayed. Ukrainian President Volodymyr Zelensky states that necessary discussions are taking too long and decisions are needed at last. Economists also emphasize that providing a $50 billion loan is only a short-term solution and will not cover all of Ukraine's needs. They believe that to ensure sustainability, Ukraine needs to utilize all frozen Russian assets amounting to over $300 billion.

The Ukrainian authorities are also concerned that the provision of funds may be tied to the implementation of reforms. This was stated by former Ukrainian Finance Minister Natalie Jaresko. She believes that from the donors' perspective, conditions for loan provision are possible.


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