The EU explained the procedure for repaying the loan with the assets of the Russian Federation
24.10.2024 - 09:54
The Eurocouncil clarified the payment procedure for the 35 billion euro loan for Ukraine.
The European Council provided an explanation regarding the mechanism for payment by Ukraine of a macro-financial loan of EUR 35 billion. This is reported by “Ukrinform”.
It will be part of a broader G7 credit support totaling $50 billion. The loan, which has a maximum repayment period of 45 years, will be provided until the end of 2024.
Ukraine will receive financial assistance from the EU at the expense of funds that will come from blocked Russian assets. At the same time, 95% of these revenues will be directed to repayment of the EU loan and loans of G7 partners, and 5% to the European Peace Fund to support Ukraine’s defense initiatives.
As noted in the official EU announcement, the decision to grant the loan was made within the framework of the emergency macro-financial assistance (EMF). This program is aimed at covering the urgent financial needs of Ukraine caused by the intensification of Russian aggression. The new mechanism will allow Ukraine to ensure macro-financial stability and reduce external financial pressure.
The loan will be disbursed through the Credit Cooperation Mechanism of Ukraine, and may also include voluntary contributions from EU member states and third countries. All payments under the MFD program will be made in compliance with policies and regulations regarding transparency and fraud prevention.
The new rules are expected to come into effect in the second half of 2025. Russian assets will remain blocked until the end of the war and full compensation for the damage caused to Ukraine.
It will be recalled that the European Parliament approved a loan to Ukraine at the expense of the frozen assets of the Russian Federation on October 22.
