EU Officials Sign Off on Ukraine Aid Package From Frozen Russian Assets
The Council of the European Union this week agreed on a $38 billion financial aid package to Ukraine that would be repaid from Russian assets frozen by the Group of 7 countries and the EU.
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The announcement comes after the G7 in June announced plans to mobilize $50 billion in seized Russian assets to help Ukraine rebuild from the war (see 2406060046). The aid package approved by the council includes an “exceptional macro-financial assistance” (MFA) loan of up to 35 billion euros, or $38 billion, along with a “loan cooperation mechanism that will support Ukraine in repaying loans for up to” 45 billion euros, or about $50 billion, provided by the EU and the G7.
“The repayment” of the loans “will be ensured by funds coming from future flows of extraordinary revenues stemming from the immobilisation of Russian sovereign assets,” said the council, which is made up of officials from EU member states.
The European Parliament must approve the council’s proposal, which would take effect the day after it's published in the Official Journal of the EU. “The aim is to make the MFA loan available in 2024, with disbursement in 2025, to be repaid over a maximum period of 45 years,” the council said.