European Parliament approves up to €35 billion loan to Ukraine backed by Russian assets

On 22 October, the European Parliament gave the green light to an extraordinary loan of up to €35 billion to Ukraine, to be repaid with future revenues from frozen Russian assets.

With 518 votes in favour, 56 against and 61 abstentions, members of the Parliament (MEPs) endorsed the new macro-financial assistance (MFA) to help Ukraine against Russia’s brutal war of aggression. 

This loan is the EU’s part of a G7 package agreed last June, to provide up to €45 billion in financial support to Ukraine. The final amount that the EU will contribute could be lower, depending on the size of the loans provided by other G7 partners.

The Ukraine Loan Cooperation Mechanism, a newly established framework, will make future revenues from the frozen Russian Central Bank assets located in the EU available to Ukraine. These funds will help Ukraine service and repay the EU’s MFA loan as well as loans from other G7 partners. While the mechanism’s funds can be used to service and repay loans, Kyiv may allocate the MFA funds as it sees fit.

The new MFA funds will be disbursed until the end of 2025.

EU governments have already endorsed the proposal, and the Council plans to adopt the regulation by written procedure after Parliament’s vote. The regulation will enter into force on the day after its publication in the Official Journal of the EU.

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Press release