(MENAFN) In a significant development, South Korea has reaffirmed its commitment to aiding Ukraine by signing a framework agreement that paves the way for providing USD2.1 billion in low-interest loans to the embattled nation. The agreement, inked by South Korean Finance Minister Choi Sang-mok and Ukrainian counterpart Sergey Marchenko, was finalized during their visit to Washington for G7, IMF, and World Bank meetings.
The move underscores South Korea's proactive stance in extending financial assistance to Ukraine, following its earlier provision of USD200 million in humanitarian aid. The additional funding aims to bolster Ukraine's financial stability amidst escalating tensions with Russia and mounting challenges on the battlefield.
According to the South Korean Finance Ministry, the agreement serves as a legal framework for facilitating credit assistance, with both parties committed to exploring joint projects aimed at Ukraine's reconstruction and development. The timing of the deal is particularly critical as Ukrainian forces grapple with ongoing military confrontations and urgent needs for resources to enhance weapons production capabilities.
Speaking to G7 finance ministers, Ukrainian Finance Minister Sergey Marchenko emphasized the indispensable role of international support, especially amid the intensifying conflict with Russian forces. While Ukraine has undertaken efforts to bolster domestic revenue and secure borrowing domestically, Marchenko highlighted the limitations of such measures in addressing the country's substantial financial requirements during wartime.
South Korea's decision to provide substantial financial support to Ukraine comes amidst pressure from the United States and other Western allies to ramp up assistance to the conflict-stricken nation. Despite Seoul's policy of offering exclusively non-lethal aid to Ukraine, recent reports suggest a willingness to expand support, including the transfer of artillery shells last year.
As Ukraine navigates the complexities of its ongoing conflict and seeks to fortify its defenses, international solidarity and assistance play a pivotal role in ensuring its resilience and stability.
The agreement with South Korea signifies a significant step forward in Ukraine's efforts to secure vital resources and support from the global community amidst challenging circumstances.
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