EC releases 18.1B euro in financial assistance for Ukraine
The European Commission (EC) decided on December 18 to make available an 18.1 billion euro macro-financial assistance (MFA) loan to Ukraine, the EC said in a statement on December 19.
The loan will be paid out in tranches over the course of 2025, with the first tranche to be paid to Ukraine in early January.
“This is the EU contribution to the G7 Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative, which will collectively provide loans worth 45 billion euro to meet Ukraine’s fiscal, military and reconstruction needs,” the statement said.
The ERA initiative builds on the Ukraine Loan Cooperation Facility, which will receive extraordinary revenue from the immobilization of Russian sovereign assets and other voluntary contributions from EU member states or third countries.
These funds will be provided to Ukraine to repay the principal and interest on eligible bilateral loans provided by donors under the G7 ERA initiative, including the EU Macro-Financial Assistance loan.
“This decision comes after the Commission concluded that Ukraine had fulfilled all the political conditions agreed for the disbursement of this sum,” the EC said.
These political conditions also represent steps towards the achievement of key reform commitments under the Facility for Ukraine, it said.
They cover macro-financial stability, state-owned enterprise reform, public administration reform, energy, rule of law and the fight against corruption.
The political conditions also include a commitment to promote cooperation with the EU on the recovery, reconstruction and modernisation of the Ukrainian defence industry.
(Photo: G Schouten de Jel)
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