On October 22, the European Parliament approved granting Ukraine a loan of up to 35 billion euros. It will be financed by future profits from frozen Russian assets.
Points of attention
- Ukraine will receive a loan of up to 35 billion euros as part of macro-financial assistance from the EU
- The loan will be financed with frozen Russian assets and will allow Ukraine to repay debts to the EU and other G7 partners
- Britain provides Ukraine with a loan of 2.26 billion pounds for budget support for military spending investing in key equipment to counter Russia
- As part of the package of financial support for Ukraine in the total amount of up to 50 billion dollars, Ukraine will have the opportunity to use the received funds for urgent financial needs
- The European Parliament and Britain demonstrate support for Ukraine in countering Russia by launching financial aid and military support mechanisms
Ukraine will receive a loan of up to 35 billion euros
518 deputies voted for this initiative, 56 were against, and 61 abstained.
The loan is part of macro-financial assistance (MFA) from the EU as part of the G7 agreements adopted in June 2023, and is included in the general package of financial support for Ukraine in the amount of up to 50 billion dollars. The final amount of EU aid may be lower, depending on the participation of other G7 countries.
Funds for repayment of the loan will be obtained from the revenues from the frozen assets of the Central Bank of Russia located in the EU. The money will be used to repay debts to the EU and other G7 partners. Ukraine will have the freedom to use the funds received.
The loan must be granted by the end of 2025, but its receipt will depend on Ukraine fulfilling the conditions, which will include the support of democratic standards, human rights and other provisions of the memorandum of understanding.
After the vote of the European Parliament, the document will be approved by the Council of the EU and will enter into force the day after its publication in the Official Journal of the EU.
Prime Minister of Ukraine Denys Shmyhal noted that this is an important contribution of the EU within the framework of the G7 package, which will help Ukraine to solve urgent financial issues.
Britain is preparing a loan for Ukraine of almost 3 billion dollars from the frozen assets of the Russian Federation
It is noted that this loan is Britain's contribution to the credit program of G7 partners to help Ukraine in the amount of $50 billion at the expense of profits from the frozen assets of the Russian Federation.
The UK loan of £2.26bn is intended to budget support Ukraine's military spending, allowing Ukrainians to invest in key equipment to support their efforts against Russia, such as air defences, artillery and wider technical support. This aid is in addition to the existing military aid to Ukraine of £3 billion per year, which the Prime Minister confirmed during his first week in office, the UK government said in a statement.
Britain became the first of the G7 countries to launch such a mechanism.
