Ukraine discussing issuing Eurobonds with frozen Russian assets as collateral - PM Shmygal

MOSCOW. March 20 (Interfax) - Ukraine is discussing the possibility of using frozen Russian assets as collateral for issuing Eurobonds, Ukrainian media reported, quoting Prime Minister Denis Shmygal.

"The discussion is extremely tough. There is no international legal framework. There is no political unity as of today. But we are working and insisting, we have put several proposals forward," Shmygal said. A video of him making his comments was posted on YouTube.

In particular, the proposals refer to the creation of an international compensation instrument consisting of an international fund, an international register of damage and international compensation commission.

"We are also discussing the proposal of UK Foreign Secretary David Cameron regarding the use of Russian frozen assets as collateral so that Ukraine, using this collateral, can issue its Eurobonds and receive budget financing for them. This is also an acceptable path for us. This collateral will be for an unlimited period of time and interest-free, therefore, we will be able to attract the same funds. Formally, this will not be confiscation of assets, but perpetual collateral until Russia reimburses these funds," Shmygal said.

He said that first of all, Ukraine insists that all sovereign assets of the Russian Federation in the amount of about $300 billion be confiscated and transferred to Ukraine for restoration and other needs, including military ones.