MEPs are discussing a €35 billion European loan for Ukraine on the second day of the EP plenary session in Strasbourg. It is expected to be voted on later today. The funds are part of a broader G7 plan to provide financial support to the country, amounting to up to €45 billion, BTA reported.
The meeting this morning began in a half-empty hall with a report by MEP Karin Karlsbro from the “Renew Europe” group (Renew Europe) to establish a mechanism for cooperation on loans for Ukraine and to provide emergency macro-financial assistance to Ukraine.
“From the first day of the war started by Vladimir Putin, it has been clear that Russia will have to pay for all the damage caused to Ukraine and to restore Ukraine's future. But so far this has not been possible. That is why there is a solution to use frozen Russian assets”, she said from the podium and insisted that Ukraine needs urgent and urgent financial assistance. Karin Karlsbro expressed the opinion that this assistance needs to be structured. “Our democratic duty is to check everything that is provided for in the mechanism for cooperation on loans for Ukraine”, she added.
“We are facing a test of European solidarity. This is not the first time, nor the last. We are racing against time. "For the Americans, our six-month cycle for renewing sanctions was a problem. The goal is to use the proceeds from Russian assets held by European banks," commented Janusz Lewandowski of the European People's Party.
European Commissioner for Justice Didier Reynders expressed the opinion that the EU and its member states provide the largest financial assistance to Ukraine and have supported it since the very beginning of the war. “So far, the support amounts to over 120 billion euros. But additional financial support is extremely important. The IMF believes that financing could reach 41.5 billion dollars in 2025. Six and a half billion more than planned,” the politician told MEPs.
He explained that the mechanism to be created is an instrument to collect profits from Russian assets, which will be made available to Ukraine to repay loans from the G7 countries and other countries that would like to join this initiative.
“The EU contribution is expressed in a loan of up to 35 billion euros, if the G7 lenders cover the difference. Later this week, on 25 October, the G7 partners will announce their contribution,” Didier Reynders added. Most MEPs from the different political groups who spoke agreed that the EU should help Ukraine rebuild its destroyed infrastructure. But there was no shortage of criticism from the “Patriots for Europe”.
“Volodymyr Zelensky's visit to Brussels did not achieve much. The EC will impose 35 billion on us to keep a country alive that cannot meet the basic needs of its people. And this is not the first time. This money will be added to a mountain of debts - 33 billion in 2023 and 10 billion earlier, and none of it was repaid. This is an adventure and Washington will not contribute to this massive financial effort. This indebtedness will threaten the economic future of Europe. This is a debt that cannot be paid and this must be known”, commented MEP Thierry Mariani.
Manon Aubry from the European Left also sounded critical. “Why are we voting for aid for Ukraine and not for Gaza? We cannot allow double standards. Yes, the criminals are Putin and Netanyahu. It is fair to use Russian assets to help Ukraine. But why don't we ask the Ukrainians to implement reforms? You are hypocrites and continue to support the Russian oligarchs. Putin continues to sell his gas. We also need to discuss Ukraine's debt. It must be restructured in order for the country to recover," believes Manon Aubry.
"Throughout the year, the EU has been trying to use frozen Russian funds or their interest to create some kind of fund for Ukraine. However, this has failed because the schemes looked dubious. These funds will never help Ukrainian citizens. They only serve to cover holes in the Ukrainian budget. This theft could lead to retaliatory actions by Russia - confiscation of European assets by Russia. "For the first time, the EU is misappropriating funds from its own citizens, but also foreign funds," commented Bulgarian MEP Rada Laikova from the "Europe of Sovereign Nations" group. She expressed the opinion that the EU has been trying for a whole year to find a mechanism with which to find a way to misappropriate foreign funds.
“These funds will first go to repay loans on other loans, then they will go to fill holes in the Ukrainian budget. Other countries like the US no longer want to invest there. This money will go to repay holes”, said Rada Laikova in response to a question from an MEP.