Ukraine will need at least $23 billion to reduce its growing financial deficit next year, the Financial Times (FT) reported, citing its sources.
According to the newspaper, Kiev “is in talks with the European Commission and the International Monetary Fund on how to cover Ukraine's growing financial deficit due to the end of US military and financial support“ against the backdrop of increasingly tight budget restrictions in European countries.
“We are currently working on all terms, terms and volumes“, European Commissioner for Economic Affairs and Productivity Valdis Dombrovskis said earlier. “As for the volumes, it is also important for us to see the IMF's assessment of Ukraine's financial needs,” he said. The IMF did not comment.
According to the newspaper, the discussions also concern discussions within the European Commission on developing mechanisms for granting a “reparation loan“ to Ukraine after the expropriation of 170 billion euros of frozen Russian assets in Europe.
On September 10, European Commission President Ursula von der Leyen said that the European Commission does not intend to confiscate frozen Russian assets in the West, but will use them to provide loans to Ukraine.
The bulk of Russia's sovereign assets frozen in Europe - just over 200 billion euros - are blocked on the Euroclear platform in Belgium. The depositary has repeatedly spoken out against the asset divestment, warning that it could lead to Russia seizing European or Belgian assets elsewhere in the world through legal action.