AVELLUM advises Ministry of Finance of Ukraine on loans from United Kingdom, Canada, and Japan, to be repaid with proceeds earned from immobilised russian sovereign assets

AVELLUM acted as the Ukrainian legal counsel to the Ministry of Finance of Ukraine in connection with three landmark loans from the United Kingdom, Canada, and Japan provided under the auspices of the EUR45 billion G7 ‘Extraordinary Revenue Acceleration (ERA) Loans for Ukraine’ initiative (“ERA Loans for Ukraine Initiative”).

Specifically, AVELLUM advised on a GBP2.26 billion loan from the United Kingdom (“UK ERA Loan”), a CAD5 billion loan from Canada (“Canada ERA Loan”), and a JPY471.9 billion loan from Japan (“Japan ERA Loan”). Along with the USD20 billion loan from the U.S. Department of the Treasury described in our earlier press release and the Macro-Financial Assistance from the European Union, these loans elevate the total committed support under the ERA Loans for Ukraine Initiative nearly up to USD50 billion.

These loans will be repaid from the windfall proceeds earned from russia’s immobilised assets as non-repayable financial support through the Ukraine Loan Cooperation Mechanism (ULCM), established by the European Union.

The proceeds from these loans will be allocated to address Ukraine’s pressing needs. The UK ERA Loan will directly support Ukraine’s procurement of defence equipment. The Canada ERA Loan will bolster Ukraine’s economy and address essential budget requirements. The Japan ERA Loan, channelled through the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund, will also support essential budget needs and contribute to the development and rebuilding of critical infrastructure.

Senior partner Glib Bondar led the AVELLUM team with significant support from managing associate Mariana Pylypenko and associates Andrii Kroshko, Elina Kryhan, and Nikita Tipikin Holovko.