EU approves €35bn for Ukraine
10 October 00:12
The European Council has agreed to allocate 35 billion euros of macro-financial assistance to Ukraine and a new mechanism to help Ukraine repay a G7 loan of up to 45 billion euros. This is stated on the website of the European Council.
“The Council has reached an agreement on a package of financial assistance to Ukraine, namely macro-financial assistance worth up to 35 billion euros and a credit cooperation mechanism that will help Ukraine repay loans of up to 45 billion euros to the EU and G7 partners,” the statement said.
It is noted that the financial assistance is aimed at financing Ukraine’s urgent needs, which have increased due to Russia’s increased aggression.
The EU has also agreed on a mechanism for repaying the MFA’s loan to the G7 partners. In particular, the loan will be repaid from the proceeds of Russia’s frozen assets.
“The Loan Facility for Ukraine will allocate these funds, as well as amounts received as voluntary contributions from Member States and third countries or other sources, in the form of financial support to Ukraine to help it repay the loans,” the European Council said in a statement.
It is noted that the €35 billion loan is the EU’s contribution to the total G7 loan to Ukraine of up to €45 billion.
In order to ensure that Ukraine receives EU financial assistance as soon as possible, the Member States have agreed that the European Parliament will adopt the Commission’s proposal without changes, and the European Council will also approve the proposal.
The Council plans to adopt the regulation by written procedure after the European Parliament adopts the text in the first reading. The MFA loan will be available in 2024 with the first disbursement in 2025.
The day before, Hungary postponed its final decision on a $50bn loan to Ukraine until after the US presidential election.
