European Parliament approves €35 billion loan for Ukraine
Illustrative photo (Getty Images)
On October 22, the European Parliament announced the approval of a loan of up to €35 billion to Ukraine, which will be paid from future revenues derived from frozen Russian assets.
518 members of the European Parliament voted in favor of the initiative, 56 opposed it, and 61 abstained.
This loan is part of the macro-financial assistance (MFA) program the EU provides as part of the G7 agreement reached in June this year. The G7 package overall provides up to $50 billion in financial support for Ukraine. The final amount from the EU may be lower, depending on the loans granted by other G7 countries.
The cooperation mechanism between Ukraine and the EU ensures that future revenues from the frozen assets of the Central Bank of Russia, held in the EU, will be used to repay the loan. These funds will cover the servicing and repayment of loans from the EU and other G7 partners. Ukraine will have the freedom to use the EU funds at its discretion.
The loan will be provided by the end of 2025. However, its disbursement will depend on Ukraine meeting its commitments to support democratic mechanisms, human rights, and other conditions outlined in the memorandum of understanding.
The regulation will be approved by the European Parliament and adopted by the EU Council. It will take effect the day after it is published in the Official Journal of the EU.
Ukrainian Prime Minister Denys Shmyhal stated that this is a significant EU contribution within the G7’s $50 billion loan package, using profits from frozen Russian assets to help cover Ukraine's urgent financial needs.
Loan for Ukraine
At the end of September, the European Commission President's visit to Kyiv marked a key decision: the EU would provide Ukraine with a €35 billion loan, which will be repaid using frozen Russian assets. This decision underscores the EU's solidarity with Ukraine and deals another blow to the Russian economy.
Ukraine's President Volodymyr Zelenskyy stated that these funds will support the energy sector and strengthen the country’s defense.
On October 9, it was announced that the EU Council had approved the European Commission’s initiative to provide this loan to Ukraine.
