The EU Council has approved the financial support package, which includes an extraordinary macro-level loan of up to 35 billion euros, as well as a credit cooperation mechanism that will help Ukraine repay 45 billion euros of loans, the EU Council announced. on Wednesday, according to MTI.
Within the framework of new macro-level financial support approved by member states, interest income from Russian Central Bank funds frozen in EU banks will be provided to Ukraine. The money will help Ukraine cover the costs of the EU loan and loans from G7 partners and repay the loan.
While funds from the mechanism can be used to cover the costs and repayment of loans, Kiev can use the amount of this financial assistance at its discretion.
The new financial support will be disbursed at the macro level until the end of 2025. The disbursement of the loan is conditional on Ukraine's continued commitment to maintaining effective democratic mechanisms and respect for human rights.
As part of the sanctions imposed by the European Union on Russia, since February 2022, the assets of the Russian Central Bank stored in the financial institutions of member states, amounting to about 210 billion euros, were frozen. The profit achieved is estimated at approximately 2.5-3 billion euros annually and depends on the interest rate. According to the European Union, these revenues are not state assets and do not have to be made available to the Russian Central Bank even after the freeze ends. After its adoption by the European Parliament, the Council of the European Union approved the text through a written procedure with the aim of making the Foreign Office loan available in 2024, with its disbursement in 2025, to be repaid in a maximum period of 45 years. The decree enters into force on the day following its issuance.
Meanwhile, the US government wants to provide Ukraine with $10 billion in military aid as part of its $20 billion commitment to the country, out of a $50 billion loan amount coordinated with G7 countries and the European Union, the White House's National Security Council said. Announced on Wednesday. the Reuters writesThe United States wants to use half of the aid money collected by the G7 from interest on frozen Russian assets for this purpose.
US President Joe Biden said: A $20 billion loan will be provided to Ukraine, which will be repaid from the interests of frozen Russian sovereign wealth. “In other words, Ukraine can get the help it needs without burdening taxpayers,” he added.
The White House National Security Council announced on Wednesday that the United States plans to allocate $10 billion in economic aid by December, but needs US lawmakers to approve another $10 billion in military aid.
The amount to be spent on repaying the loans will come from interest amounting to about $300 billion, most of which is Russian assets frozen in the European Union.
