The European Parliament today gave the “green light” to the €35 billion macro-financial assistance loan to Ukraine, which will be serviced and repaid from the windfall revenues of frozen Russian assets in the EU.

By 518 votes in favour, 56 against with 61 abstentions, Parliament approved the Macroeconomic Financial Support (MFS) loan to Kiev, which is part of a package agreed at the G7 level last June to provide up to $50 billion in support (approx. EUR 45 billion) to Ukraine. 

The final amount the EU will contribute may be lower than the maximum of €35 billion, depending on the size of the loans provided by the other G7 members.

Future revenues generated by frozen Russian state assets will finance the repayment of related loans. The assets of the Central Bank of Russia, amounting to EUR 210 billion. euros, are kept in the EU and remain frozen under sanctions imposed over Moscow’s invasion of Ukraine in February 2022.

The new MFS funds will be disbursed by the end of 2025, given Ukraine’s continued commitment to having effective democratic mechanisms, respecting human rights, and other conditions at the level of national policies to be determined in a relevant memorandum of understanding. 

In addition, the management and control systems described in the plan for Ukraine, together with specific measures to prevent fraud and other irregularities, will also apply to the MFS loan.

The EU Council (the member states) has already approved the €35 billion loan to Kyiv. 

After approval by the European Parliament, the Council of the EU is expected to approve the regulation by written procedure, which will enter into force the day after its publication in the Official Journal of the EU.

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