Marta Gichko14:00, 22.10.24

With this decision, the EU allocates 35 billion euros to Ukraine as a contribution to the G7 initiatives, with subsequent repayment from frozen Russian assets.

The European Parliament supported the resolution on the establishment of a Credit Cooperation Mechanism with Ukraine and the provision of exceptional macro-financial assistance , the EP press service reported .

518 deputies voted for the initiative, 56 voted against, 61 abstained. Consequently, with this decision, the EU allocates 35 billion euros to Ukraine as a contribution to the G7 initiatives, with subsequent repayment at the expense of frozen assets of the Russian Federation.

It is noted that this mechanism of cooperation with Ukraine on loans will ensure the use of future income from frozen assets of the Central Bank of Russia, which are in the EU, to repay the loan. These funds will be used to service and repay loans from the EU and other G7 partners. Ukraine will be able to use the funds received from the EU at its own discretion.

The loan is expected to be provided by the end of 2025. Its receipt will be contingent on Ukraine fulfilling its obligations to support democratic mechanisms, human rights and conditions that will be spelled out in the memorandum of understanding.

Ukrainian Prime Minister Denys Shmyhal welcomed the European Parliament’s decision to provide exceptional macro-financial assistance of up to €35 billion.

“This is an important contribution from the EU to the $50 billion G7 loan using revenues from frozen Russian assets, which will help cover Ukraine’s urgent financial needs. In addition, the UK will provide £2.26 billion under the same G7 loan. This budget support will help cover military spending, in particular on air defense, artillery and essential equipment. We are grateful to our partners from the EU and the UK for their unconditional support for Ukraine in the fight against Russian aggression,” the Prime Minister said .

(c)UNIAN 2024