Ukraine won't repay $90 billion EU loan — here's the plan
Photo: Makis Keravnos (president.gov.ua)
On Thursday, April 23, the European Council approved a €90 billion loan for Ukraine. It will be repaid using reparations from Russia, according to the European Council.
According to the amendments to EU regulations adopted today, the loan to Ukraine will be financed through borrowing on capital markets and backed by reserves of the European budget.
At the same time, it is emphasized that the loan will be repaid using reparations that Russia is expected to pay to Ukraine.
“ Loan disbursements will start flowing as soon as possible, providing vital support for Ukraine’s most pressing budgetary needs. The EU remains steadfast in its support for Ukraine’s sovereignty and territorial integrity,” Keravnos said.
Loan for Ukraine
Today, April 23, European Council President António Costa announced that the European Union has unblocked a €90 billion loan package for Ukraine. The funds will be used for:
- Domestic weapons production
- Purchasing weapons from partners, those that Ukraine does not yet manufacture on its own
- Preparing the energy sector and critical infrastructure for the coming winter
- Fulfilling social obligations to citizens.
Costa added that, alongside the loan, the EU also approved a 20th package of sanctions against Russia to reduce its ability to wage war.
It should be noted that yesterday, EU ambassadors had preliminarily agreed on the €90 billion loan and the 20th sanctions package. Hungary had blocked the funding due to the halt of oil supplies via the Druzhba pipeline, lifting its veto only after transit resumed.
President of Ukraine Volodymyr Zelenskyy said that Ukraine expects to receive the first tranche of the €90 billion from the EU by late May or early June. According to him, the funds will go toward the military, weapons production, and support for citizens.
