Written by Tim Peters with Ana Luisa Melo Almeida.
Since the start of Russia’s full-scale war of aggression against Ukraine in February 2022, the European Union has provided Ukraine with financial, military and humanitarian support on an unprecedented level. To date, the support to Ukraine from ‘Team Europe’ – comprising the EU and its Member States – amounts to €143 billion. This support includes macro-financial assistance, financial support through the Ukraine Facility, humanitarian aid and military assistance from Member States and through the European Peace Facility, as well as support to EU Member States hosting Ukrainian refugees.
The disbursement of EU payments under the Ukraine Facility is conditional on Ukraine implementing the Ukraine Plan, an ambitious plan for reform and investment drafted by Ukraine’s government and endorsed by the EU. The European Commission and the Ukrainian government publish data on the progress of the reforms and on the disbursal of payments. Those data form the basis for a Ukraine Facility Dialogue, which ensures the democratic scrutiny of the EU’s support to Ukraine.
In addition to the Ukraine Facility, Regulation (EU) 2024/2773 provides for a €18.1 billion EU macro-financial assistance loan for Ukraine as part of a €45 billion G7 loan. Furthermore, a Ukraine Loan Cooperation Mechanism was established, which uses extraordinary revenues originating from Russian sovereign assets immobilised in the G7 member states to repay loans and the associated interest costs. The rights, responsibilities and obligations provided for in the framework agreement under the Ukraine Facility, referred to in Article 9 of Regulation (EU) 2024/792, will apply to the macro-financial assistance loan in order to ensure seamless political and financial management of both.
The European Parliament has repeatedly called for the confiscation of the immobilised Russian sovereign assets as such – instead of just using the extraordinary revenues – to finance further support for Ukraine and the country’s reconstruction.
Read the complete briefing on ‘State of play: EU support to Ukraine – Payments, reform and investment, use of immobilised Russian assets‘ in the Think Tank pages of the European Parliament.
Comments are closed for this post.