EU agrees EUR35bn loan to Ukraine using frozen Russian assets
Ukraine - EU flags - Image by Dusan Cvetanovic from Pixabay
(BRUSSELS) - The EU agreed a loan to Ukraine of up to EUR 35 billion Wednesday, as well as a loan cooperation mechanism supporting Ukraine in repaying loans of up to EUR 45 bn provided by the EU and G7 partners.
The aid aims to provide immediate relief to Ukraine's urgent financing needs that have increased due to Russia's intensified aggression towards Ukraine.
Repayment of the EUR 35 billion macro-financial assistance (MFA) loan and eligible bilateral loans from G7 partners will be ensured by funds coming from future flows of extraordinary revenues stemming from the immobilisation of Russian sovereign assets.
The Ukraine loan mechanism will disburse these funds - as well as amounts that may be received as voluntary contributions from member states and third countries - in the form of financial support to Ukraine, to assist it in servicing and repaying the loans.
The €35 billion loan is the EU's contribution to the G7 loan of up to €45 billion. The new MFA operation will be linked to policy conditions that are consistent with the EU's 'Ukraine Facility' - the EU instrument for Ukraine's recovery and reconstruction. The management and control systems proposed under the 'Ukraine Plan' and specific provisions on the prevention of fraud and other irregularities will also apply to the MFA loan.
To ensure speedy implementation, EU member states have agreed that if the European Parliament adopts the Commission's proposal without changes, the Council will also proceed to adopt the text without modifications.
EU response to Russia's invasion of Ukraine (background information)