EU parliament approves $37 billion loan for Ukraine
On Tuesday in Strasbourg, Members of the European Parliament gave the green light for a loan of up to CAD 37 billion for Ukraine. The debt is to be repaid from the revenues of frozen Russian assets.
The new loan represents the EU's contribution to the G7 support for Ukraine, agreed upon in June, valued at around $47 billion CAD. The funds are to be disbursed by the end of 2025.
The European Parliament approved the loan with 518 votes in favour, 56 against, and 61 abstentions. The final amount that the EU will provide may be lower, depending on the size of loans granted by non-EU G7 countries.
As highlighted by the European Parliament, the loan is conditional on Ukraine's continued commitment to maintaining effective democratic mechanisms, respect for human rights, and other political conditions.
- Ukraine continues to resist Russian aggression, and its courageous citizens are fighting not only for their own survival and freedom but also to defend democracy, human rights, freedom, and international law for all of us. The need for financial support is enormous and urgent. Russia must pay for its attacks on Ukrainians and the brutal destruction of infrastructure, cities, villages, and homes in Ukraine. The burden of rebuilding Ukraine will fall on those responsible for its destruction, namely Russia, - said the rapporteur for the decision, MEP Karin Karlsbro (Renew Europe).
"Russia bears responsibility for its actions"
On Tuesday morning, before the vote, the European Commission appealed to the European Parliament to support the loan for Ukraine.
Commissioner for Justice Didier Reynders recalled that since the beginning of the war, EU support for Ukraine has reached over $128 billion CAD, including more than $27 billion CAD from previous EU macro-financial assistance operations. - However, additional and urgent financial support is crucial for Ukraine. (...) The International Monetary Fund (IMF) estimates that the financial gap could reach $41.5 billion CAD in 2025, which is $15.6 billion CAD more than previously estimated - said Reynders.
- Russia bears responsibility for its actions. The loan is meant to burden not the victim who was attacked but the aggressor. By the end of this week, G7 partners will announce their contributions in Washington - declared Reynders.
Earlier, the decision to support the loan was made by the member states within the EU Council. The assets of the Central Bank of Russia, valued at approximately $224 billion CAD, are frozen in the EU under sanctions imposed due to the invasion of Ukraine in February 2022.
