The decision by the European Parliament was approved by an overwhelming majority: 518 members voted in favor, 56 against, and 61 abstained. The loan is intended to strengthen the country’s energy infrastructure and defense.
The decision also fits within a broader EU discussion about responsibility for the reconstruction of Ukraine and the possibility of partially recovering the financial burdens from the party responsible for the damage: Russia. In this case, it concerns funds from the Russian Central Bank. These funds will go to Ukraine, enabling the repayment of loans from the EU and other G7 partners.
About 210 billion euros in assets of the Russian Central Bank are held within the EU. This amount remains frozen under the sanctions imposed following Russia’s invasion of Ukraine in February 2022.
EU countries have decided to set aside the profits from these assets (i.e., the interest on the funds held in bank accounts). These will be used for aid and reconstruction of Ukraine. However, the country must meet certain conditions set by the EU, such as strengthening democracy and maintaining the democratic rule of law. Ukraine must also respect human rights. These conditions will be formalized 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 distressed country urgently needs financial support, according to the Swedish MEP.
‘Russia must pay for attacking Ukrainians and brutally destroying the country’s infrastructure, cities, villages, and homes.’ Karlsbro adds: ‘The burden of rebuilding Ukraine will be borne by those responsible for its destruction, namely Russia.’