Strasbourg (Brussels Morning Newspaper) – MEPs approved an exceptional loan of up to €35 billion to Ukraine, to be compensated with future payments from frozen Russian assets.
Today on 22 Oct 2024 with 518 votes in favour, the European Parliament approved the new macro-financial assistance (MFA) to support Ukraine against Russia’s brutal war of aggression.
This loan is the EU’s component of a G7 package consented to last June, to deliver up to $50 billion (roughly €45 billion) in financial backing to Ukraine. The absolute amount that the EU will contribute could be lower, depending on the extent of the loans delivered by other G7 partners.
What is the EU’s new loan mechanism for Ukraine’s aid?
As reported by the press of the EU Parliament, the Ukraine Loan Cooperation Mechanism, a newly launched framework, will make prospective revenues from the frozen Russian Central Bank assets operated in the EU available to Ukraine. These funds will support Ukraine’s service and compensate the EU’s MFA loan as well as loans from other G7 members. While the mechanism’s funds can be utilised to service and repay loans, Kyiv may assign the MFA funds as it notices fit.
What role does Ukraine’s democratic commitment play in loan approval?
According to EU Parliament, the new MFA funds will be paid until the end of 2025. The loan is dependent upon Ukraine’s continued dedication to upholding effective democratic mechanisms and respecting human rights, and further policy requirements are to be outlined in a memorandum of understanding. Further, the management and control systems set out in the Ukraine Plan, along with specific steps to prevent fraud and other anomalies, will apply to the MFA loan.
What did MEP Karin Karlsbro say about Russia’s responsibility?
In her remarks, MEP Karin Karlsbro said: “Ukraine continues to fight Russian aggression, with its brave citizens battling not only for their existence and freedom, but to defend democracy, human rights, freedom, and international law for all of us. The need for financial support is both immense and urgent. Russia must pay for attacking Ukrainians and brutally destroying the country’s infrastructure, cities, villages, and homes. The burden of rebuilding Ukraine will be shouldered by those responsible for its destruction, namely Russia.”
