France to provide Ukraine EUR 1.2 bln loans, Zelensky says

At a meeting with president Emmanuel Macron in Kyiv on Feb. 8, Volodymyr Zelensky thanked the French side for the provision of EUR 1.2 bln in financial support, though he provided few details on its nature. Later, Zelensky’s office issued a press release explaining that this support will consist of a EUR 200 mln loan from the French to the Ukrainian government and EUR 1 bln in financial guarantees. Under these guarantees, the Ukrainian government can take loans from French banks under projects that will be agreed separately and should involve French contractors and suppliers.

Separately, the two parties signed documents on the financing and supply of electric locomotives, rescue equipment and patrol boats, the presidential website stated.

Alexander Paraschiy: This is generous support from the French side, even though the primary goal for most of the loans is stimulating French goods and services supply to Ukraine. Promises of financial support for Ukraine from western partners are very helpful for limiting Ukraine’s sovereign risks amid talks of possible Russian aggression. Next week, German Chancellor Scholz is visiting Ukraine, and we now reasonably expect that he also won’t come empty-handed.