EU Parliament Allocates Up to €35 Billion Loan to Ukraine From Frozen Russian Assets
The European Parliament has supported the European Commission's proposal to provide Ukraine with a loan of up to €35 billion to be repaid from the proceeds of frozen Russian assets. This is reported on the website of the European Parliament.
The decision was supported by 518 MEPs, 56 were against, and 61 abstained.
‘On Tuesday, MEPs gave the green light to an emergency loan of up to €35 billion to Ukraine, to be repaid from future proceeds of frozen Russian assets,’ the European Parliament website says.
This loan is part of the EU package agreed by the G7 last June to provide Ukraine with financial support of up to $50 billion. It is noted that the final amount to be allocated by the EU may be less, depending on the size of loans provided by other G7 partners.
Disbursements will be made in 2025.
‘The need for financial support is huge and urgent. Russia must pay for the attack on Ukrainians and the brutal destruction of the country's infrastructure, cities, villages and homes. The burden of rebuilding Ukraine will fall on the shoulders of those responsible for its destruction, namely Russia,’ said Karin Karlsbrough.
As noted by the head of the Ukrainian government, Denys Shmyhal, this is an important contribution by the EU as part of the $50 billion G7 loan using the proceeds of frozen Russian assets to help cover Ukraine's urgent financial needs. In addition, the UK will provide £2.26 billion as part of the same G7 loan, the Prime Minister reminded.
‘Such budget support will help to ensure military spending, in particular on air defence, artillery and necessary equipment,’ the Prime Minister stressed.
In September, the European Commission announced a €35 billion EU loan to Ukraine as part of a plan by G7 partners to provide loans of up to $50 billion (about €45 billion). Future proceeds from frozen Russian state assets will finance these loans.
Around €210 billion of the Central Bank of Russia's assets are held in the EU and remain frozen under sanctions imposed over Moscow's invasion of Ukraine in February 2022. EU governments have decided to set aside the profits from these assets and use them to support the war effort and the reconstruction of Ukraine.