Commons Sense

House of Commons · Written Ministerial Statement

Contingent Liability Notification: Ukraine Guarantees

12 October 2022 · Foreign, Commonwealth and Development Office

Proposed by Leo Docherty Con Aldershot

Foreign AffairsUkraine

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The FCDO is undertaking two contingent liabilities to support Ukraine's economic stability following Russia's invasion.
  • The FCDO is presenting a Departmental Minute to Parliament detailing new guarantees worth 54m for Ukrenergo and 527m for the Government of Ukraine.
  • This statement has been made due to urgency and unexpected parliamentary disruptions.

Issue summary

The Foreign, Commonwealth and Development Office (FCDO) is undertaking two contingent liabilities to support Ukraine's economic stability following Russia’s invasion.

Action requested

The FCDO is presenting a Departmental Minute to Parliament detailing new guarantees worth €54m (£47m) for Ukrenergo and €527m (£460m) for the Government of Ukraine, with maturities of 5 years and 18 years respectively. This statement has been made due to urgency and unexpected parliamentary disruptions.

Key facts

  • FCDO is undertaking two contingent liabilities in excess of £300,000.
  • The first guarantee supports EBRD lending to Ukrenergo with an expected maximum exposure of €54m (£47m).
  • The second guarantee supports World Bank lending directly to the Government of Ukraine with a maximum exposure of €527m (£460m).
  • Guarantees are denominated in the currency Ukraine decides to borrow in.
  • UK payout is triggered if Ukrenergo or the Ukrainian government miss a repayment by 180 days.
  • Maturity for EBRD guarantee is 5 years; World Bank guarantee is 18 years.
  • HM Treasury approved both guarantees and expedited notification process.
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