Ukraine and US align new recovery fund sans past aid
Ukrainian Prime Minister Denys Shmyhal announced that the new agreement with the USA regarding the recovery fund will not include previous assistance. The document is currently being prepared and must align with Ukraine's commitments to Europe.
What do you need to know?
- Recovery fund agreement: The new agreement between Ukraine and the USA will not cover assistance provided prior to its signing. Prime Minister Denys Shmyhal emphasized that the document must align with Ukraine's European commitments.
What are the key elements of the new agreement?
Ukrainian Prime Minister Denys Shmyhal reported that the Economic Partnership and Recovery Fund Investment Agreement with the USA is being prepared. The document will not include assistance provided by the United States prior to its signing. Shmyhal noted that the agreement must align with Ukraine's European commitments and cannot breach the country's constitution.
What are the plans regarding frozen Russian assets?
Ukraine intends to use frozen Russian assets and introduce a special duty on the import of Russian goods. Prime Minister Shmyhal described this as an "economic mechanism of reparations" that allows action without waiting for political changes in Russia. Thanks to the mechanism proposed by the G7 countries, Ukraine already has a confirmed $67 billion CAD in revenues from frozen assets.
What are Ukraine's sources of funding for 2025?
Ukraine is secured funding for 2025, which includes addressing a budget deficit of $39 billion CAD. The primary sources are the IMF program, the EU Ukraine Facility program, and revenues from frozen Russian assets. Prime Minister Shmyhal stressed that efforts are underway to attract new resources and technologies for economic growth after the war.
