Ukraine will receive a loan of EUR 35 billion from the assets of the Russian Federation, — Committee of the European Parliament
15.10.2024 - 11:52
This is the EU’s contribution to the G7 initiative to allocate about 45 billion euros to meet Ukraine’s urgent financial needs caused by Russia’s aggression.
The Committee on Trade of the European Parliament supported by a majority of votes the provision of a loan of 35 billion euros to Ukraine at the expense of frozen Russian assets. This is reported by “Ukrinform”.
Funds for this loan, as well as for other loans from G7 countries, will come from the frozen assets of the Russian Central Bank, and their management will be carried out through the newly created Credit Mechanism for cooperation with Ukraine.
The frozen assets of the Russian Federation, as well as possible contributions from EU countries and other states, will be available to Ukraine through the specified mechanism for servicing this loan and other obligations to G7 partners.
Ukraine will be able to use these funds in its priority areas. Control over the use of credit will be carried out in accordance with special measures defined in the plan aimed at preventing abuse. The loan will be available until the end of 2024, and its repayment should be completed by the end of 2025.
Payments under the loan will depend on Ukraine fulfilling its obligations regarding democratic reforms and respect for human rights, which will be recorded in the Memorandum of Understanding.
The European Commission’s proposal to provide Ukraine with macro-financial assistance in the amount of 35 billion euros must be finally approved by the European Parliament during the plenary session, which will take place on October 21-24.
As USM wrote, earlier the EU will allocate 2.5 billion euros for the modernization of the transport infrastructure of Ukraine and Moldova.
