BRUSSELS (ChatnewsTV) — The European Parliament has approved an extraordinary loan of up to €35 billion for Ukraine, to be repaid with future revenues from frozen Russian assets, as part of ongoing support in the face of Russia’s invasion.
On Tuesday, Members of the European Parliament (MEPs) voted in favor of the new macro-financial assistance (MFA) package with 518 votes in support, 56 against, and 61 abstentions. The loan is the EU’s contribution to the G7 initiative, agreed upon in June, to provide Ukraine with up to $50 billion (approximately €45 billion) in financial support.
The newly established Ukraine Loan Cooperation Mechanism will use future windfall profits from the frozen Russian Central Bank assets, held within the EU, to help Ukraine repay this loan, as well as loans from other G7 partners. The funds will be disbursed until the end of 2025.
“Ukraine continues to resist Russian aggression, with its brave citizens fighting not only for their own existence and freedom but also to defend democracy, human rights, and international law for all of us,” said MEP Karin Karlsbro (Renew, SE), the loan rapporteur. “Russia must pay for attacking Ukrainians and brutally destroying the country’s infrastructure, cities, and homes.”
Under the terms of the loan, Ukraine must maintain its commitment to democratic governance, human rights, and policy reforms, which will be outlined in a memorandum of understanding. Safeguards, including fraud prevention measures, will also be enforced through the Ukraine Plan.
EU governments have already endorsed the proposal, and the regulation is expected to be adopted by the Council via written procedure, coming into effect the day after its publication in the EU’s Official Journal.
The loan is part of a broader plan, initiated by the G7, to assist Ukraine financially as it continues to rebuild following the devastation caused by Russia’s invasion in February 2022.
