EU guarantees loans up to 35 billion euros to Ukraine – DW – 10/23/2024

The Council of the European Union (EU countries) this Wednesday (23/10/2010) supported a loan of up to 35 billion euros to Ukraine, which Kiev will pay from the profits of Russian assets frozen by sanctions.

After the European Parliament approved this macro-financial aid on Wednesday, Community sources told EFE that the Council had taken the decision, by written procedure, to provide $50 billion (about $45 billion) in June under a G7 initiative. Is part of. Euro) to Ukraine to meet its military needs and support its economy.

The final amount contributed by the EU may be less than the 35 billion euros, depending on the contributions of other G7 partners to the loan, for which the United States has already confirmed it will contribute $20 billion ( The EU contribution may remain the same (same figure).

The recently established so-called Ukraine Debt Support Mechanism will provide the country with future profits from the Russian Central Bank’s frozen assets in the EU.

The new macro-financial assistance fund will be disbursed by the end of 2025 and the loan is subject to Ukraine’s commitment to maintaining effective democratic mechanisms and respecting human rights, as well as other political conditions to be set out in a memorandum. This text shall enter into force on the day following its publication in the Official Journal of the EU.

G7 partners plan

In September, the Commission proposed an EU loan of 35 billion euros for Ukraine as part of an above-mentioned plan for the issuance of up to $50 billion (about 45 billion euros) of credit by G7 partners.

The loans would be financed by profits from frozen Russian state assets. About €210 billion of Russia’s Central Bank remains in the EU and has been frozen in February 2022 as part of sanctions imposed over its invasion of Ukraine.

EU governments decided to reserve the profits from these assets and use them to support both military efforts and the reconstruction of Ukraine.

On the other hand, they have not managed to lift Hungary’s veto to change from six months to three years the renewal period of the sanctions that freeze these Russian assets, so that they can continue to provide extraordinary profits for a longer period.

CT (EFE, AFP)