Head of the National Bank of Ukraine Andriy Pysniy has proposed to introduce an innovative financial instrument — a «reparations loan». This mechanism involves providing Ukraine with long-term loans from international partners, secured by Ukraine’s requirements for compensation from Russia and guarantees of frozen Russian reserves, which will be used in case of Russia’s refusal to pay reparations. Pysniy wrote about this on his Facebook page, according to UNN.
Roundtable Discussion on Reparations Loan
During the roundtable, the idea of a reparations loan was discussed, which includes long-term loans from Ukraine’s partners under the requirements for Russia to pay reparations and guarantees of frozen Russian reserves. These reserves can be credited by creditors against Ukraine’s obligations for the loan in case Russia refuses to pay reparations.
According to Pysniy, this mechanism is also being considered along with the idea of a loan secured by income from Russian assets, as it is flexible in implementation, understandable to politicians, and less risky from a legal perspective.
«The fact that the expert community and politicians are generating various creative ideas regarding financial engineering is undoubtedly a positive trend. This indicates that our international partners are actively seeking effective solutions to provide Ukraine with access to Russian assets,» Pysniy added.
