The European Parliament approved a €35 billion loan for Ukraine

The initiative was supported by 518 deputies, with 56 voting against and 61 abstaining.

This loan is part of the macro-financial assistance (MFA) provided by the EU under the G7 agreement concluded in June this year. Overall, the G7 package provides for up to 50 billion dollars of financial support for Ukraine. The final amount from the EU may be smaller, depending on the volume of loans provided by other G7 countries.

The cooperation mechanism with Ukraine regarding the loans will ensure the use of future revenues from frozen assets of the Central Bank of Russia located in the EU to repay the loan. These funds will be directed towards servicing and repaying loans from the EU and other G7 partners. Kyiv will be able to use the funds received from the EU at its discretion.

The loan will be provided by the end of 2025. However, its receipt will depend on Ukraine fulfilling its commitments regarding the support of democratic mechanisms, human rights, and conditions that will be stipulated in a memorandum of understanding.

After approval by the European Parliament, the regulation will be adopted by the EU Council and will come into effect the day after its publication in the Official Journal of the EU.

Ukrainian Prime Minister Denys Shmyhal stated that this is an important contribution by the EU within the framework of the 50 billion dollar G7 loan using the profits from frozen Russian assets, which will help cover Ukraine’s urgent financial needs.