Article 20 — Ukraine Support Loan Agreement

1. The detailed financial terms of the Ukraine Support Loan shall be laid down in the Ukraine Support Loan Agreement. 2. In addition to the elements laid down in Article 223(4) of Regulation (EU, Euratom) 2024/2509, the Ukraine Support Loan Agreement shall require that: (a) the Ukraine Support Loan is to be a limited recourse loan that becomes due and payable upon the occurrence of a repayment trigger as defined in subparagraph (j); (b) Ukraine provides the Union with a security interest over its claim on Russia for reparations as security for the Ukraine Support Loan. The value of that security interest shall at any given time be equal to the value of disbursed funds under the Ukraine Support Loan; (c) the rights, responsibilities and obligation provided for in the Framework Agreement under the Ukraine Facility referred to in Article 9 of Regulation (EU) 2024/792 apply to the Ukraine Support Loan Agreement and the funds therein; (d) the amount of assistance referred to in Article 8(2), point (a)(i), of this Regulation is to be implemented in accordance with Chapter III of Regulation (EU) 2024/792, with the exception of rules on the duration and repayment of the loan, including the borrowing costs subsidy, as referred to in Article 22, which are to be governed by this Regulation; (e) Ukraine utilises the same management and control systems as proposed in the Ukraine Plan established under Regulation (EU) 2024/792, including beyond the availability period referred to in Article 6(2) of that Regulation; (f) the Commission has the right to monitor activities, expenditures and measures under Chapter IV of this Regulation that are carried out by the Ukrainian authorities, along the whole project cycle; (g) Ukraine is to immediately notify the Commission should a draft contract or agreement financed through the Ukraine Support Loan not be implemented; (h) Ukraine continues to respect the precondition set out in Article 5(1); (i) Ukraine does not reverse any measure taken under any other current or previous instruments of support provided by the Union or IMF concerning anti-corruption; (j) Ukraine is to be liable for the repayment of the principal of the Ukraine Support Loan within 30 days, if any of the following conditions are fulfilled, each constituting a repayment trigger for the purposes of this Regulation: (i) the receipt of cash by Ukraine for war reparations, indemnities or any financial settlement from Russia, up to the amount of such settlement; (ii) 90 days from the receipt of non-monetary assets by Ukraine for war reparations, indemnities or any financial settlement from Russia, except territory, up to the amount of such settlement which is to be determined by an independent valuation. Upon request of Ukraine, the Commission may grant an extension of this timeframe if strictly warranted; (iii) that Ukraine is in breach of point (h); or (iv) it has been established that, in relation to the management of the Ukraine Support Loan, Ukraine has engaged in any act of fraud, corruption or any other illegal activity detrimental to the financial interests of the Union. (k) Ukraine is liable to repay the Ukraine Support Loan: (i) where the conditions set out in point (j)(i) and (ii) are fulfilled, for an amount of the monetary value of the war reparations, indemnities or any financial settlement from Russia equal to the proportion of the Ukraine Support Loan outstanding against the sum of the value of the Ukraine Support Loan outstanding, any outstanding reparations loans provided by G7 members and any outstanding liabilities under ERA Loans; (ii) where the condition set out in point (j)(iii) is fulfilled, for the total outstanding amount of the Ukraine Support Loan; (iii) where the condition set out in point (j)(iv) is fulfilled, for the value of fraud, corruption or any other illegal activity detrimental to the financial interests of the Union. (l) any amounts of the Ukraine Support Loan not covered by the liability referred to in point (k) are to remain in place until future repayment trigger events occur; (m) in the case of payments or recoveries, Ukraine is to indicate the relevant payments from the Ukraine Support Loan that are being repaid or recovered; (n) the Union has the right to make use of Russian assets immobilised in the Union to repay the loan, in full accordance with Union and international law; (o) Ukraine is to ensure that the procurement procedures and contracts for other products for defence purpose resulting from procurement receiving support under the Ukraine Support Loan contain appropriate eligibility conditions to protect the security and defence interests of the Union and its Member States. The Ukraine Support Loan Agreement shall also include any other requirements needed for the implementation of the Ukraine Support Loan, including those necessary to implement Article 17 of this Regulation. 3. Non-compliance with the terms of the Ukraine Support Loan Agreement shall constitute a ground for the Commission to suspend or cancel, in full or in part, the release of the instalment or tranches. Non-compliance with repayment terms of the Ukraine Support Loan Agreement shall additionally constitute a ground for the total or part of the outstanding amount of the Ukraine Support Loan to become due and payable. 4. The Ukraine Support Loan Agreement shall be made available, upon request, simultaneously to the European Parliament and to the Council.