Russia said on Friday that the West should stop supplying weapons to Ukraine and sponsoring “terrorist activity” if it wanted to send a signal it was serious about seeking an end to the war.
Denys Shmyhal, Ukraine’s prime minister, said that “using immobilized Russian Central Bank assets for non-repayable assistance underscores the EU’s unwavering commitment to Ukraine’s sovereignty and resilience amid Russia’s aggression.”
On a non-repayable basis:
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Minfin called the terms of the loan 35 billion euros from the EU
Friday, September 20, 2024, 17:06 -
The new loan from the European Union for 35 billion euros will be provided in the form of a macro-financial assistance program (Macro-Financial Assistance – MFA) for 2024-2025 and will be repaid from profits from Russia's frozen assets in the EU.
About it reports press service of the Ministry of Finance.
Thus, all MFA funds for Ukraine are expected to be non-refundable. Internal financial resources will not be used for repayment.
About it reports press service of the Ministry of Finance.
Thus, all MFA funds for Ukraine are expected to be non-refundable. Internal financial resources will not be used for repayment.
The decision of the European Commission is part of the G7 initiative (not an alternative) on the mechanism of additional loans to increase revenues to the budget of Ukraine
(Extraordinary Revenue Acceleration Loans for Ukraine).
Minfin added that this is currently only a proposal of the European Commission, it will enter into force after consideration and support by the European Parliament and the Council of the EU.
- At the same time, Ukraine will determine for itself what to direct the funds received within this mechanism.
- Macro-financial assistance will not be tied to specific expenditures, while it will provide the most urgent needs.
It is expected that the funds may be available in the coming months.
"An unprecedented and just decision in favor of restoring peace to the European continent. 35 billion euros – is a necessary investment in support of Ukraine's financial stability and our ability to effectively confront the enemy at the front. Importantly, the proposal stipulates that this investment will be provided using the proceeds from the immovable assets of the aggressor country.
The issue of confiscation of all frozen assets of the Russian Federation should remain on the agenda. The use of profits is one of the first steps in this direction,"
"An unprecedented and just decision in favor of restoring peace to the European continent. 35 billion euros – is a necessary investment in support of Ukraine's financial stability and our ability to effectively confront the enemy at the front. Importantly, the proposal stipulates that this investment will be provided using the proceeds from the immovable assets of the aggressor country.
The issue of confiscation of all frozen assets of the Russian Federation should remain on the agenda. The use of profits is one of the first steps in this direction,"
– said Finance Minister Sergei Marchenko.
Let's remind:
European Commission President Ursula von der Liaen during a visit to Kyiv on September 20 announced on the allocation to Ukraine of an EU loan of €35 billion.
European Commission President Ursula von der Liaen during a visit to Kyiv on September 20 announced on the allocation to Ukraine of an EU loan of €35 billion.
Europe will loan war-torn Ukraine up to $39 billion as part of G7 pledge
LondonCNN —
The European Union will lend Ukraine up to €35 billion ($39 billion), providing the lion’s share of a $50 billion loan agreed by G7 nations earlier this year.
European Commission President Ursula von der Leyen announced the loan Friday in a post on X as part of her visit to Kyiv. “Relentless Russian attacks means Ukraine needs continued EU support,” she wrote, adding that the loan was part of “the G7 pledge.”
European Commission President Ursula von der Leyen announced the loan Friday in a post on X as part of her visit to Kyiv. “Relentless Russian attacks means Ukraine needs continued EU support,” she wrote, adding that the loan was part of “the G7 pledge.”
“We are now confident that we can deliver this loan to Ukraine very quickly,” she later said at a press conference with Ukrainian President Volodymyr Zelensky in Kyiv, telling him:
“You will decide how best to use the funds… And this will free more of your national resources to strengthen then, for example, your military capabilities and to defend yourself against the Russian aggression.”
The funds are expected to be delivered to Ukraine by the end of the year.
In June, the Group of Seven, which brings together some of the world’s largest economies, agreed to collectively loan about $50 billion to Ukraine, using the future windfall profits from Russian assets held in the EU and elsewhere as collateral.
Western nations froze Russia’s assets in bank accounts located in Europe, the United States and other countries as part of a massive wave of sanctions enacted after Russian President Vladimir Putin ordered the invasion of Ukraine in 2022.
Around two-thirds of Russia’s frozen assets, or some €210 billion ($234 billion), sits in the EU, while just $3 billion is located in US banks.
Western nations froze Russia’s assets in bank accounts located in Europe, the United States and other countries as part of a massive wave of sanctions enacted after Russian President Vladimir Putin ordered the invasion of Ukraine in 2022.
Around two-thirds of Russia’s frozen assets, or some €210 billion ($234 billion), sits in the EU, while just $3 billion is located in US banks.
The EU loan still requires approval by the European Parliament and a qualified majority of the bloc’s member states.
“In view of the urgency of the proposal, the Commission will be working … to ensure a swift adoption,” the European Commission said in a press release.
The announcement sends “a clear signal that the burden of rebuilding Ukraine will be shouldered by those responsible for its destruction,” it added.
The announcement sends “a clear signal that the burden of rebuilding Ukraine will be shouldered by those responsible for its destruction,” it added.
- The funding mechanism stops short of seizing the frozen Russian assets outright. The EU has been worried that such a move would discourage other countries from keeping their assets in the bloc.
Von der Leyen’s visit to Kyiv comes just as the winter heating season starts in Ukraine. Russia’s bombardments targeted at the country’s energy infrastructure have intensified in recent months, leaving Ukrainians vulnerable to power outages.
On Thursday, the International Energy Agency said this coming winter will be the “sternest test yet” for Ukraine’s energy system.
On Thursday, the International Energy Agency said this coming winter will be the “sternest test yet” for Ukraine’s energy system.
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