European Commission welcomes consensus reached by G7 partners to collectively provide €45 billion in financial assistance to Ukraine

The European Commission has welcomed the consensus reached by the EU and G7 partners last Friday to collectively provide loans for €45 billion to support Ukraine’s urgent budgetary, military and reconstruction needs. 

“This confirms that the EU and G7 partners fulfil the commitment they made in June at the Apulia G7 Leaders’ Summit,” said a press release published by the EU Delegation to Ukraine on 29 October. “This achievement underscores the unwavering commitment of the EU and its G7 partners to support Ukraine in its fight for its freedom, recovery and reconstruction.”

These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilisation of Russian Central Bank assets.

The consensus amongst G7 members was facilitated by the EU’s creation of the Ukraine Loan Cooperation Mechanism. This mechanism, recently endorsed by the European Parliament following a proposal of the Commission, will receive extraordinary revenues stemming from the immobilisation of Russian sovereign assets and other voluntary contributions made by Member States or third countries.

These resources will then be distributed to Ukraine to repay the principal and interest on eligible bilateral loan agreements with lenders under the G7 ‘Extraordinary Revenue Acceleration (ERA) Loans for Ukraine’ initiative.

To ensure that Ukraine would receive the full amount of financing committed by G7 Leaders, the EU contributed to this initiative with an exceptional EU macro-financial assistance (MFA) loan of up to €35 billion. The MFA loan is expected to be made available to Ukraine before the end of 2024 and have a maximum duration of 45 years.

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Press release