BRUSSELS (ChatnewsTV) — Members of the European Parliament’s Trade Committee voted on Monday to approve a €35 billion loan to Ukraine.
According to a press statement released on Monday by the European parliament, the committee voted 31-4 in favor of the European Commission’s proposal for the exceptional Macro-Financial Assistance (MFA) loan. The loan is part of a broader G7 commitment to provide up to $50 billion (€45 billion) to help Ukraine address its urgent financing needs.
The loan will be repaid using future revenues from frozen Russian Central Bank assets, immobilized under EU sanctions following Russia’s 2022 invasion of Ukraine. The funds will be funneled through the newly established Ukraine Loan Cooperation Mechanism, which enables the redirection of extraordinary revenues from Russian assets to help Ukraine repay the loan and other G7 contributions.
“Using profits from immobilized Russian assets sends a clear signal that the burden of rebuilding Ukraine must be shouldered by those responsible for its destruction, namely Russia,” said Karin Karlsbro (Renew, SE), the rapporteur for the proposal. “The new macro-financial assistance and loan cooperation mechanism supports Ukraine to maintain important basic functions in society. Making Russia pay is an important step. Ukraine is not only fighting for its own existence and freedom, but also ours.”
The funds are undesignated, allowing Ukraine flexibility in their use, with oversight systems in place to prevent fraud and ensure proper management. Disbursement of the loan is expected by the end of 2024, with a completion date set for the end of 2025.
The EU’s financial support is contingent on Ukraine maintaining democratic governance, upholding human rights, and adhering to policy conditions detailed in a forthcoming memorandum of understanding.
The European Parliament is scheduled to vote on the proposal in its session from October 21-24. The Council has already endorsed the measure, with final approval expected soon after Parliament’s vote.
This marks another milestone in the EU’s ongoing commitment to support Ukraine. In addition to humanitarian and military aid, the Union’s decision to repurpose frozen Russian assets highlights its determination to hold Moscow accountable for the damage caused by its invasion. Over €210 billion in Russian Central Bank assets have been frozen within the EU since sanctions were imposed in early 2022.
Next Steps
Once Parliament approves the proposal, the regulation will enter into force the day after its publication in the Official Journal of the EU. The funds are expected to support Ukraine’s continued resilience as the war grinds on, enabling the country to meet critical financial obligations and maintain essential services.
