{"id":153962,"date":"2024-10-23T10:41:01","date_gmt":"2024-10-23T08:41:01","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=153962"},"modified":"2024-10-23T10:41:11","modified_gmt":"2024-10-23T08:41:11","slug":"parliament-approves-up-to-e35-billion-loan-to-ukraine-backed-by-russian-assets","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/parliament-approves-up-to-e35-billion-loan-to-ukraine-backed-by-russian-assets\/","title":{"rendered":"Parliament approves up to \u20ac35 billion loan to Ukraine backed by Russian assets"},"content":{"rendered":"
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On Tuesday, MEPs gave their green light to an extraordinary loan of up to \u20ac35 billion to Ukraine, to be repaid with future revenues from frozen Russian assets.<\/strong><\/p>\n

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With 518 votes in favour, 56 against and 61 abstentions, Parliament endorsed the new macro-financial assistance (MFA) to help Ukraine against Russia\u2019s brutal war of aggression<\/strong>. This loan is the EU\u2019s part of a G7 package agreed last June, to provide up to $50 billion (approximately \u20ac45 billion) in financial support to Ukraine. The final amount that the EU will contribute could be lower, depending on the size of the loans provided by other G7 partners.<\/p>\n

The Ukraine Loan Cooperation Mechanism<\/strong>, a newly established framework, will make future revenues from the frozen Russian Central Bank assets located in the EU available to Ukraine. These funds will help Ukraine service and repay the EU\u2019s MFA loan as well as loans from other G7 partners. While the mechanism\u2019s funds can be used to service and repay loans, Kyiv may allocate the MFA funds as it sees fit.<\/p>\n

The new MFA funds will be disbursed until the end of 2025<\/strong>. The loan is conditional upon Ukraine\u2019s continued commitment to uphold effective democratic mechanisms, respect human rights, and further policy conditions to be set out in a memorandum of understanding. Additionally, the management and control systems outlined in the\u00a0Ukraine Plan<\/a>, along with specific measures to prevent fraud and other irregularities, will apply to the MFA loan.<\/p>\n

Quote<\/strong><\/p>\n

\u201cUkraine continues to resist Russian aggression, with its brave citizens fighting not only for their own 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\u2019s infrastructure, cities, villages, and homes. The burden of rebuilding Ukraine will be shouldered by those responsible for its destruction, namely Russia,\u201d rapporteur\u00a0Karin Karlsbro (Renew, SE)\u00a0<\/a><\/strong>said.<\/p>\n

Next steps<\/strong><\/p>\n

EU governments already\u00a0endorsed<\/a>\u00a0the proposal, and the Council plans to adopt the regulation by written procedure after Parliament\u2019s vote. The regulation will enter into force on the day after its publication in the Official Journal of the EU.<\/p>\n

Background<\/strong><\/p>\n

In September, the Commission announced a \u20ac35 billion EU loan for Ukraine as part of a plan by G7<\/strong> partners to issue loans of up to $50 billion (about \u20ac45 billion). Future revenues coming from the frozen Russian state assets would finance the loans. Approximately\u00a0\u20ac210 billion<\/a>\u00a0in assets from the Central Bank of Russia are held in the EU and remain frozen under sanctions imposed over Moscow’s invasion of Ukraine in February 2022. EU governments\u00a0decided<\/a>\u00a0to set aside the profits from these assets, and use them to support both military efforts and reconstruction in Ukraine.<\/p>\n

Further information: European Parliament<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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