AVELLUM, General Partner of the UBA, is proud to announce its role as the Ukrainian legal counsel to the Ministry of Finance of Ukraine on securing a USD20 billion loan from the U.S. Department of the Treasury (“US ERA Loan”), provided under the EUR45 billion G7 ‘Extraordinary Revenue Acceleration (ERA) Loans for Ukraine’ initiative (“ERA Loans for Ukraine Initiative”).

The US ERA Loan represents a first-of-its-kind ERA loans, which will be repaid from the windfall proceeds earned from russia’s immobilised assets as non-repayable financial support out of the Ukraine Loan Cooperation Mechanism (“ULCM”), 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 immobilised in the international clearing systems shortly after Russia’s invasion of Ukraine. If and when war reparations are paid to Ukraine by the Russian Federation in the future, the proceeds of those reparations will also be available as a source of repayment of the ERA loans.

The US ERA 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 provided comprehensive guidance on Ukrainian legal and regulatory matters throughout the negotiation and signing processes and assisted the Ministry of Finance of Ukraine in drafting necessary amendments to the Ukrainian budget legislation to facilitate attraction of the loan.

Senior partner Glib Bondar led the AVELLUM team with support from managing associate Mariana Veremchuk, of-counsel Yurii Krasnoliudskyi, associates Andrii Kroshko, Nikita Tipikin-Holovko and Elina Kryhan.

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