The European Parliament has approved a loan of up to 35 billion euros to Ukraine. This amount will be paid from revenues from seized Russian bank accounts in the EU. The approval is therefore not only an economic signal, but also a political statement against Russian aggression.
The European Parliament's decision was approved by an overwhelming majority: 518 members voted in favour, 56 against, and 61 abstained. The loan is intended to strengthen the country's energy infrastructure and defence.
The decision also fits into a broader discussion in the EU about the responsibility for the reconstruction of Ukraine and the possibility of partly recovering the financial burden from the party that caused the damage: Russia. In this case, it concerns assets of the Russian Central Bank. These funds go to Ukraine, with which the loan from the EU and other G7 partners can be repaid.
About €210 billion of Russian Central Bank assets are held in the EU, an amount that remains frozen under sanctions imposed after Russia’s invasion of Ukraine in February 2022.
The EU countries have decided to set aside the profits from these assets (= the interest on the deposits in the bank accounts). These will be used for aid and reconstruction of Ukraine. However, the country must meet certain requirements set by the EU, such as developing democracy and maintaining the democratic constitutional state. Ukraine must also respect human rights. These are conditions that will still be laid down in an agreement.
Ukraine continues to bravely resist Russian aggression, says rapporteur and MEP Karin Karlsbro. She praises the country for its "brave citizens who not only fight for their own existence and freedom, but also defend democracy, human rights, freedom and international law for all of us." The ailing country urgently needs financial support, the Swede said.
“Russia must pay for attacking Ukrainians and brutally destroying the country’s infrastructure, cities, villages and homes,” Karlsbro added. “The burden of rebuilding Ukraine will be borne by those responsible for its destruction, namely Russia.”