The Council of the European Union has approved a significant financial assistance package for Ukraine worth €35 billion. This macro-financial aid is intended to address Ukraine's immediate financing needs amid increased Russian aggression.
In an official announcement, the Council stated that it has reached an agreement on this exceptional loan, which includes a new credit mechanism designed to help Ukraine fulfill its obligations to the G7 countries. The assistance aims to bolster Ukraine's economy and support its efforts to maintain stability during these challenging times.
A notable aspect of this initiative is the repayment strategy. Under the "Extraordinary Loans to Accelerate Revenues for Ukraine" program, the repayment of the exceptional loan and bilateral loans will be ensured using revenues generated from frozen Russian assets. This approach not only provides Ukraine with the necessary funds but also utilizes existing resources to mitigate the financial burden.
The loan facility allows for the allocation of funds, which may include voluntary contributions from EU member states and third countries. These contributions will assist Ukraine in servicing and repaying the loans, highlighting the collaborative effort of the international community to support Ukraine's sovereignty and economic resilience.
