Ukraine secures another benefactor — RT World News

South Korea signed a framework agreement on economic cooperation with Kiev, including low-interest loans worth $2.1 billion

South Korea has continued its pledge to provide more aid to Ukraine, signing a framework agreement that paves the way for giving Kiev $2.1 billion in low-interest loans to help shore up its finances.

South Korean Finance Minister Choi Sang-mok and his Ukrainian counterpart Sergei Marchenko signed the agreement on Friday in Washington, where the two men traveled to attend meetings of the G7, the International Monetary Fund and the World Bank. Seoul previously granted Ukraine $200 million in humanitarian aid amid its conflict with Russia and promised to provide an additional $2.1 billion through long-term loans.

“Friday’s agreement was intended to establish the legal basis for credit assistance.” The South Korean Ministry of Finance said on Sunday statement. He added: “The two sides agreed to explore projects together that help in the reconstruction and development of Ukraine.”

The deal comes at a time when Russian forces are making gains on the battlefield and the cash-strapped Ukrainian government is struggling to increase weapons production. Marchenko told G7 finance ministers that although the Ukrainian government had made progress in increasing its revenues and borrowing money domestically, it was… “Internal measures have only a limited effect.” he added, “Ukraine’s financial needs in conditions of large-scale war are significant, and international support remains vital.”

South Korea has faced pressure from the United States and other Western allies to strengthen its support for Ukraine, but has sought to avoid raising tensions with Russia. Although Seoul has maintained an official policy of providing only non-lethal aid to Kiev — as the country has a law against sending weapons to war zones — President Yoon Suk-yeol's administration has reportedly approved the transfer of more than 300,000 weapons. To Kiev. Artillery shells To Ukraine last year.

The framework agreement with Ukraine calls for South Korea to start offering low-interest loans in 2025. U.S. lawmakers approved the long-stalled Ukraine deal. Aid bill on saturday. House Speaker Mike Johnson gained further support for the legislation by reclassifying some of the nearly $61 billion that will be given to Kiev as loans that are supposed to be repaid at some point.

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