European Parliament approves EUR 35B loan to Ukraine backed by frozen Russian assets

The European Parliament has endorsed a resolution on establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance.

This loan is the EU’s part of a G7 package agreed last June, to provide up to USD 50 billion (approximately EUR 45 billion) in financial support to Ukraine.

With 518 votes in favor, 56 against and 61 abstentions, the European Parliament approved such a decision in the first reading, an Ukrinform correspondent reports.

Following the vote, President of the European Parliament Roberta Metsola emphasized that this decision sends a very strong signal to Russia that, being the aggressor state, it will have to pay for all the destruction.

According to European Commissioner for Justice Didier Reynders, with this mechanism, the EU not only confirms unwavering support for Ukraine for as long as necessary, but also takes an important step to ensure Russia’s responsibility, including financial. It is very important that Russia pays for its aggression and for the damage caused by it on its own, Reynders stressed, adding that it is necessary to further support Ukraine in the coming months, and perhaps even years, in close cooperation and coordination with all G7 countries and other international partners.

A reminder that, in view of a speedy adoption and ensuring that the macro-financial assistance reaches Ukraine as soon as possible, EU Member States agreed that if the European Parliament adopts the Commission’s proposal without changes, the Council will also proceed to adopt the text without modifications. The Council plans to adopt the regulation by written procedure after the European Parliament’s vote. The regulation will enter into force on the day after its publication in the Official Journal of the EU.

On October 9, 2024, the Council of the European Union reached an agreement on a financial assistance package to Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to EUR 35 billion and a loan cooperation mechanism that will support Ukraine in repaying loans for up to EUR 45 billion provided by the EU and G7 partners. The new MFA funds will be disbursed until the end of 2025.