Brussels (Brussels Morning Newspaper) – EU Parliament Trade Committee supports a loan of up to €35 billion to Ukraine backed by Russian assets.
MEPs in the Trade Committee voted in acceptance of the EU Commission’s proposal to keep Ukraine with an exceptional Macro-Financial Assistance (MFA) loan of about €35 billion. This is the EU’s assistance under the G7’s initiative to back Ukraine with up to $50 billion (roughly €45 billion) to address Ukraine’s critical financing requirements.
What role do Russian assets play in the Ukraine loan?
The future payments from frozen Russian assets, as well as possible assistance from EU member states and other countries, are specified to be made available to Ukraine via the mechanism to aid the country in repaying the unusual MFA loan, as well as loans from other G7 partners assessed as qualified by the EU Commission.
How does the eu ensure transparency and prevent fraud in Ukraine?
As reported by the press of the EU Parliament, the new MFA loan is undesignated, permitting Ukraine to allocate the funds as it considers appropriate. The management and control systems summarised in the Ukraine Plan, along with specific steps to prevent fraud and other irregularities, will also apply to the MFA loan.
It has been stated that the new MFA funds will be made unrestricted by the end of 2024, and spent until the end of 2025. The MFA support is conditional upon Ukraine’s continued dedication to upholding effective democratic instruments, respecting human rights, and further policy conditions to be outlined in a memorandum of understanding.
How does this loan underscore the EU’s commitment to Ukraine?
In her remarks, MEP Karin Karlsbro said, ”Utilizing gains from immobilised Russian assets sends a clear indication that the load of rebuilding Ukraine must be shouldered by those responsible for its collapse, namely Russia. The new macro-financial assistance and loan cooperation tool supports Ukraine in keeping important basic functions in society. Making Russia pay is a critical step. Ukraine is not only battling for its existence and freedom but also ours. This proposal highlights the EU’s unwavering commitment to Ukraine’s sovereignty and economic stability,”
