Ukraine inks deal with EU to attract up to $36.7B in macro-financial assistance

By Burc Eruygur

ISTANBUL (AA) - Ukraine on Wednesday signed a deal and memorandum with the EU to attract up to €35 billion ($36.7 billion) in macro-financial assistance to the war-torn country.

A Ukrainian Finance Ministry statement said that the funds which will provide for the assistance are part of the Extraordinary Revenue Acceleration Loans for Ukraine initiative of the Group of Seven, but that the final amount to be provided will be determined after all parties to the initiative approve the amount of loans they will give.

The statement said the EU’s contribution to the assistance may amount to €18 billion ($18.9 billion), considering the proposed financing of $20 billion by the US.

It further said that the EU's loan will be repaid from future revenues from frozen Russian assets in the EU.

“The next important step is to raise funds from the frozen assets of the aggressor country (Russia),” Ukrainian Finance Minister Serhii Marchenko was quoted as saying.

He added that Kyiv has been working with the EU and other partners within the initiative in order to meet Ukraine's financial needs for next year and "beyond."

The plan to provide a loan of up to €35 billion for Ukraine as part of the G7's broader initiative was announced by European Commission President Ursula von der Leyen during a visit to the country's capital Kyiv in September.

During a summit held in Italy back in June, G7 leaders agreed to launch the Extraordinary Revenue Acceleration Loans for Ukraine initiative to make available about $50 billion in additional funding to Kyiv by the end of the year.