By Necva Tastan Sevinc
ISTANBUL (AA) – The European Parliament (EP) on Tuesday approved a loan of up to €35 billion (approximately $37.8 billion) for Ukraine, which would be financed through revenues generated by frozen Russian assets in the European Union.
The new macro-financial assistance (MFA) is the EU's contribution to a broader G7 commitment made in June to provide up to $50 billion (approximately €45 billion) in financial aid to Ukraine.
The final amount from the EU will depend on contributions from other G7 partners, the EP said in a statement.
The funds, which are scheduled to be disbursed by the end of 2025, are part of a new Ukraine Loan Cooperation Mechanism, which allows future revenues from frozen Russian Central Bank assets held in the EU to be used to assist Ukraine in servicing and repaying the loan.
Kyiv, the capital of Ukraine, will have flexibility in how it allocates the MFA funds.
The loan is conditional on Ukraine’s continued adherence to democratic principles, human rights, and other policy conditions outlined in a forthcoming memorandum of understanding.
Strict measures to prevent fraud and financial irregularities will also apply.
Rapporteur Karin Karlsbro of the Renew party emphasized the urgent need for financial aid during the plenary session, stating, "Ukraine continues to resist Russian aggression, with its brave citizens fighting not only for their own freedom, but also for democracy, human rights, and international law. Russia must compensate for the devastation it has caused."
The loan proposal has already been endorsed by EU governments, with the council expected to formally adopt the regulation soon. Once published in the Official Journal of the EU, the regulation will come into effect.
This move follows the European Commission’s announcement in September of the €35 billion loan as part of a G7 plan, leveraging around €210 billion in frozen Russian state assets to help fund Ukraine’s recovery and military efforts.
The aid package was overwhelmingly approved, with 518 votes in favor, 56 against, and 61 abstentions.