On October 9, 2024, the European Council approved a financial aid package for Ukraine amounting to up to €35 billion, part of the G7's commitment to provide a total of €45 billion in loans secured by revenues from frozen Russian assets held in the West. This decision was announced on the official website of the European Council.
The aid package includes a macro-financial assistance loan of up to €35 billion and a credit cooperation mechanism to support Ukraine in repaying loans totaling €45 billion, financed by the EU and G7 partners. The repayment of this loan will be sourced from future revenues generated by frozen Russian assets, 70% of which are held in Belgium's Euroclear central securities depository. The EU Council anticipates that the funds will be available to Ukraine later this year, with repayment scheduled over a maximum period of 45 years.
However, the proposal still requires approval from the European Parliament, after which the European Council will formally adopt the decision. Member states have agreed that if the European Parliament approves the European Commission's proposal without changes, the Council will also approve the text without amendments. The decision will take effect the day after its publication in the EU's official journal.
According to sources from Reuters, the decision does not guarantee the receipt of profits from Russian assets, which the United States had requested for their participation in the loan. The U.S. has urged the EU to extend the periods for reviewing and renewing sanctions against Russia to provide more assurances regarding the preservation of these assets and the inflow of revenues. The European Commission proposed extending this period from six to 36 months, but Hungary, which previously threatened to block the loan until after the U.S. presidential elections in November, refused to submit this proposal for discussion.
Media reports indicate that even without such a safeguard, the U.S. is willing to participate in the loan, but the amount contributed would be less than initially planned. The vote in the European Parliament is expected to take place on October 22.