EU approves $37 billion loan for Ukraine, funded by Russian assets
On Tuesday in Strasbourg, members of the European Parliament approved a loan of up to $37 billion for Ukraine. The debt will be repaid from the revenues of frozen Russian assets.
12:21 PM EDT, October 22, 2024
This new loan is the EU's contribution to the G7 support for Ukraine, agreed upon in June, valued at around $47 billion. The funds are to be disbursed by the end of 2025.
The European Parliament approved the loan with 518 votes in favor, 56 against, and 61 abstentions. The final amount the EU will provide may be lower, depending on the size of loans granted by non-EU G7 countries.
As highlighted by the European Parliament, the loan is conditional on Ukraine's continued commitment to maintaining effective democratic mechanisms, respect for human rights, and other political conditions.
MEP Karin Karlsbro (Renew Europe), the rapporteur for the decision, emphasized that Ukraine continues to stand against Russian aggression, with its courageous citizens fighting not just for their survival and freedom, but also in defense of democracy, human rights, and international law on a broader scale. She stressed the urgent need for significant financial support and stated that Russia must be held accountable for its attacks on Ukrainians and the widespread destruction of infrastructure, cities, and homes. According to Karlsbro, the responsibility for rebuilding Ukraine should rest on those who caused the damage—namely, Russia.
"Russia bears responsibility for its actions"
On Tuesday morning, before the vote, the European Commission appealed to the European Parliament to support the loan for Ukraine.
Commissioner for Justice Didier Reynders highlighted that since the war began, the EU's support for Ukraine has surpassed $128 billion, including over $27 billion from previous EU macro-financial assistance efforts. He stressed that Ukraine urgently needs additional financial aid, noting that the International Monetary Fund (IMF) projects a potential financial gap of $41.5 billion by 2025, which is $15.6 billion higher than earlier estimates.
Reynders reiterated that Russia must be held accountable for its actions, emphasizing that the financial burden should fall on the aggressor, not the victim. He also mentioned that by the end of the week, G7 partners are expected to announce their contributions in Washington.
Earlier, the member states within the EU Council decided to support the loan. The Central Bank of Russia's assets, valued at approximately $224 billion, are frozen in the EU under sanctions imposed due to Russia's invasion of Ukraine in February 2022.
