EP approves allocation of up to EUR 35 bln to Ukraine from revenues from Russian assets under G7 initiative
The European Parliament supported the European Commission proposal to provide Ukraine with an exceptional loan of up to EUR 35 billion as a contribution to the initiatives of the G7 countries, with subsequent repayment at the expense of unexpected revenues from frozen Russian assets
A total of 635 MEPs took part in the vote, of which 518 voted "for," and 56 - "against" with 61 abstentions.
The corresponding vote on the resolution to adopt a regulation of the European Parliament and the Council on the establishment of the Ukraine Loan Cooperation Mechanism and the provision of exceptional macro-financial assistance to Ukraine took place on Tuesday in Strasbourg as part of a plenary session of the European Parliament.
The rapporteur was Karin Karlsbro (Sweden, Liberal Renew Europe Group).
The exceptional loan of up to EUR 35 billion is the EU's contribution to the G7 initiative to support Ukraine with up to $50 billion (approximately EUR 45 billion) to meet Ukraine's urgent financial needs in the face of Russia's brutal war of aggression. The repayment of this exceptional MFA loan and loans from other G7 countries will be made from extraordinary revenues generated by the immobilised assets of the Russian Central Bank and secured by the Ukraine Loan Cooperation Mechanism recently established following a proposal from the Commission. Future proceeds from immobilised Russian assets, as well as potential contributions from EU Member States and other countries, should be made available to Ukraine through this mechanism to help the country repay the exceptional MFA loan, as well as loans from other G7 partners that the Commission deems eligible. The funds will only be used to service and repay eligible loans and the MFA loan.
The new MFA loan has no earmarked purpose, allowing Ukraine to allocate the funds as it sees fit. The governance and control systems set out in Ukraine’s Plan, along with specific measures to prevent fraud and other irregularities, will also apply to the MFA loan. The new MFA funds will be available by the end of 2024 and disbursed by the end of 2025.
The EU Council has previously approved the proposal and plans to adopt a written regulation after a vote by parliament. The regulation is expected to enter into force the day after its publication in the EU's Official Journal.
