{"id":153746,"date":"2024-10-16T03:00:57","date_gmt":"2024-10-16T01:00:57","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=153746"},"modified":"2024-10-15T11:09:55","modified_gmt":"2024-10-15T09:09:55","slug":"trade-committee-approves-financial-aid-to-ukraine-backed-by-russian-assets","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/trade-committee-approves-financial-aid-to-ukraine-backed-by-russian-assets\/","title":{"rendered":"Trade Committee approves financial aid to Ukraine backed by Russian assets"},"content":{"rendered":"<div class=\"ep_gridcolumn ep-m_product\" data-view1200=\"6\" data-view1020=\"6\" data-view750=\"10\" data-view640=\"6\" data-view480=\"8\" data-view320=\"4\">\n<div class=\"ep_gridcolumn-content\">\n<div class=\"ep-a_text ep-layout_chapo\">\n<p style=\"text-align: justify;\"><strong>MEPs in the Trade Committee voted on Monday to support a loan of up to \u20ac35 billion to Ukraine as the EU&#8217;s contribution to the G7&#8217;s support initiative.<\/strong><\/p>\n<figure id=\"attachment_99664\" aria-describedby=\"caption-attachment-99664\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original.jpg\"><img decoding=\"async\" class=\"size-full wp-image-99664\" src=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original.jpg\" alt=\"Banderas ucrania y Europa\" width=\"1800\" height=\"1200\" srcset=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original.jpg 1800w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original-300x200.jpg 300w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original-1024x683.jpg 1024w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original-768x512.jpg 768w, https:\/\/www.cde.ual.es\/wp-content\/uploads\/2022\/03\/20220321PHT25903_original-1536x1024.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/a><figcaption id=\"caption-attachment-99664\" class=\"wp-caption-text\">Ukrainian Flag is raised at the EP building in Brussels<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ep_gridcolumn ep-m_product\" data-view1200=\"6\" data-view1020=\"6\" data-view750=\"10\" data-view640=\"6\" data-view480=\"8\" data-view320=\"4\">\n<div class=\"ep_gridcolumn-content\">\n<div class=\"ep-a_text\">\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\"><strong>The Trade Committee voted by 31 in favour, 4 against and no abstentions<\/strong> on the Commission proposal to support Ukraine with an exceptional Macro-Financial Assistance (MFA) loan of up to \u20ac35 billion. This is the EU\u2019s contribution under the G7&#8217;s initiative to support Ukraine with up to $50 billion (approximately \u20ac45 billion) to address Ukraine\u2019s urgent financing needs in the face of Russia\u2019s brutal war of aggression.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">The repayment of this exceptional MFA loan and of the loans from other G7 countries will come from the extraordinary revenues made from immobilised Russian Central Bank assets, and enabled by the Ukraine Loan Cooperation Mechanism, newly established under the Commission\u2019s proposal.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">The future revenues from frozen Russian assets, as well as possible contributions from EU member states and other countries, are set to be made available to Ukraine through the mechanism in order to assist the country in repaying the exceptional MFA loan, as well as loans from other G7 partners considered as eligible by the Commission. These funds will only be used for servicing and repaying eligible loans and the MFA loan.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">The new MFA loan is undesignated, allowing Ukraine to allocate the funds as it deems appropriate. The management and control systems outlined in the\u00a0<a href=\"https:\/\/www.europarl.europa.eu\/RegData\/etudes\/ATAG\/2024\/759582\/EPRS_ATA(2024)759582_EN.pdf\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">Ukraine Plan<\/a>, along with specific measures to prevent fraud and other irregularities, will also apply to the MFA loan. The new MFA funds will be made available by the end of 2024, and disbursed until the end of 2025. The MFA loan is conditional upon Ukraine&#8217;s continued commitment to uphold effective democratic mechanisms, respect human rights, and further policy conditions to be set out in a memorandum of understanding.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\"><strong>Quote<\/strong><\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">\u201dUsing profits from immobilised Russian assets sends a clear signal that the burden of rebuilding Ukraine must be shouldered by those responsible for its destruction, namely Russia. The new macro-financial assistance and loan cooperation mechanism supports Ukraine to maintain important basic functions in society. Making Russia pay is an important step. Ukraine is not only fighting for its own existence and freedom, but also ours. This proposal underscores the EU&#8217;s unwavering commitment to Ukraine&#8217;s sovereignty and economic resilience,\u201d rapporteur\u00a0<a href=\"https:\/\/www.europarl.europa.eu\/meps\/EN\/197401\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">Karin Karlsbro (Renew, SE)\u00a0<\/a>said.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\"><strong>Next steps<\/strong><\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">Parliament is expected to vote on the proposal during its 21-24 October session. The Council\u00a0<a href=\"https:\/\/www.consilium.europa.eu\/en\/press\/press-releases\/2024\/10\/09\/immobilised-assets-council-agrees-on-up-to-35-billion-in-macro-financial-assistance-to-ukraine-and-new-loan-mechanism-implementing-g7-commitment\/\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">endorsed<\/a>\u00a0the proposal last week, and it plans to adopt the regulation by written procedure after Parliament\u2019s vote. The regulation is expected to enter into force on the day after its publication in the Official Journal of the EU.<\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p class=\"ep-wysiwig_paragraph\" style=\"text-align: justify;\">In September, the Commission announced a \u20ac35 billion EU loan for Ukraine as part of a plan by G7 partners to issue loans of up to $50 billion (\u20ac45 billion). Future revenues coming from the frozen Russian state assets would finance the loans. Approximately\u00a0<a href=\"https:\/\/www.consilium.europa.eu\/en\/policies\/sanctions-against-russia\/sanctions-against-russia-explained\/\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">210 billion euros<\/a>\u00a0assets from the Central Bank of Russia are held in the EU and have been frozen under sanctions imposed over Moscow&#8217;s invasion of Ukraine in February 2022. EU governments\u00a0<a href=\"https:\/\/www.consilium.europa.eu\/en\/press\/press-releases\/2024\/05\/21\/extraordinary-revenues-generated-by-immobilised-russian-assets-council-greenlights-the-use-of-windfall-net-profits-to-support-ukraine-s-self-defence-and-reconstruction\/\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">decided<\/a>\u00a0to set aside the extraordinary revenues from these assets, and use them to support both military efforts and reconstruction in Ukraine. Setting up the\u00a0<a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/qanda_24_4703\" target=\"_blank\" rel=\"noopener\" data-analytics-event-attached=\"true\">Ukraine Loan Cooperation Mechanism<\/a>\u00a0underlines the EU\u2019s continued support to Ukraine.<\/p>\n<p style=\"text-align: justify;\"><strong>Further information: <a href=\"https:\/\/www.europarl.europa.eu\/news\/es\/press-room\/20241011IPR24520\/ukraine-trade-committee-endorses-financial-support-backed-by-russian-assets\">European Parliament<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>MEPs in the Trade Committee voted on Monday to support a loan of up to \u20ac35 billion to Ukraine as the EU&#8217;s contribution to the G7&#8217;s support initiative. The Trade Committee voted by 31 in favour, 4 against and no abstentions on the Commission proposal to support Ukraine with an exceptional Macro-Financial Assistance (MFA) loan [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":99664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4090,346,12594],"tags":[6669,12274,12783,5005],"class_list":{"0":"post-153746","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-finance","8":"category-eu-news","9":"category-international-conflicts","10":"tag-loan","11":"tag-russian-assets","12":"tag-trade-committee","13":"tag-ukraine","14":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trade Committee approves financial aid to Ukraine backed by Russian assets | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cde.ual.es\/la-comision-de-comercio-aprueba-una-ayuda-financiera-a-ucrania-respaldada-por-activos-rusos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trade Committee approves financial aid to Ukraine backed by Russian assets | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda\" \/>\n<meta property=\"og:description\" content=\"MEPs in the Trade Committee voted on Monday to support a loan of up to \u20ac35 billion to Ukraine as the EU&#8217;s contribution to the G7&#8217;s support initiative. 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