On October 14, the Committee on Trade of the European Parliament approved the EU's proposal to provide Ukraine with a loan of 35 billion euros at the expense of frozen Russian assets.
Points of attention
- The Committee on Trade of the European Parliament has approved a 35 billion euro loan for Ukraine, funded by frozen Russian assets, bringing Ukraine closer to receiving financial assistance.
- The loan proposal is part of the G7 initiative for a general credit of 50 billion dollars, with the EU contributing a significant amount to support Ukraine's financial stability.
- The European Parliament is set to vote on the loan proposal on October 21-24, followed by the Council of the EU's adoption, ensuring the funds become available to Ukraine from 2024 onwards.
- The loan, intended to help Ukraine repay debts to the EU and G7 partners, comes with political conditions similar to the existing EU Ukraine Facility, reinforcing the need for reforms outlined in the Ukraine Plan.
- The loan agreement stipulates that Ukraine must repay the 35 billion euro loan within a maximum period of 45 years, utilizing future profits from the investment of frozen Russian assets.
Ukraine has become one step closer to receiving a loan from the EU
The granting of credit was supported by 31 members of the trade committee, while 4 were against, while no one abstained from voting.
Subsequently, it is expected that on October 21-24, the European Parliament will have to vote on the loan proposal. The regulation must then be adopted by the Council of the EU, which will enter into force the day after its publication in the Official Journal of the EU.
A loan of 35 billion euros for Ukraine, which is planned to be provided with the funds of the frozen assets of the Russian Federation, is part of the plan within the framework of the G7 initiative for a general credit of 50 billion dollars.
Ukraine can receive 35 billion euros in loans from the EU
In the evening of October 9, the Council of the EU reached an agreement on providing Ukraine with a package of macro-financial assistance in the amount of up to 35 billion euros, which will be part of a loan from the Group of Seven, for which the profits from the frozen assets of the Russian Federation will be used.
The Council of the EU reached an agreement on providing Ukraine with an exceptional loan of up to 35 billion euros and a credit cooperation mechanism that will help Ukraine repay loans of up to 45 billion euros from the European Union and G7 partners.
It is about the European share of the loan for 50 billion dollars (45 billion in euros) from the G7, which will be repaid with future profits from the investment of the frozen sovereign assets of the Russian Federation, the idea of which the leaders agreed to in June.
The EU plans for funds to become available to Ukraine from 2024, and the loan to be repaid within a maximum of 45 years.
The new macro-financial assistance will be tied to the same political conditions as under the existing mechanism of financial assistance from the EU Ukraine Facility, which are outlined in the special reform plan (Ukraine Plan).
