Avellum, working with White & Case, has advised the Ministry of Finance of Ukraine on a USD 20 billion loan from the U.S. Department of the Treasury provided under the EUR 45 billion G7 Extraordinary Revenue Acceleration Loans for Ukraine initiative.
According to Avellum, the “US ERA Loan represents a first-of-its-kind ERA loans, which will be repaid from the windfall proceeds earned from Russia’s immobilized assets as non-repayable financial support out of the Ukraine Loan Cooperation Mechanism, adopted by the European Union. The ERA Loans for Ukraine Initiative has been designed so that these loans can be repaid without recourse to Ukraine, with funds for servicing and repaying the loans to be derived from the ULCM. The ULCM, administered by the European Commission, will itself be funded from extraordinary net profits generated by central securities depositories in the European Union and (potentially) other G7 countries on Russian Central Bank assets and reserves, which were immobilized in the international clearing systems shortly after Russia’s invasion of Ukraine.”
Moreover, the firm reports that the loan is also “supported by a guarantee from the U.S. Agency for International Development. The funds will be disbursed through the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund and will be used to bolster Ukraine’s economy, rebuild critical infrastructure, and support essential budget needs.”
The Avellum team included Senior Partner Glib Bondar, Of-Counsel Yurii Krasnoliudskyi Managing Associate Mariana Veremchuk, and Associates Andrii Kroshko, Nikita Tipikin-Holovko, and Elina Kryhan.
