In order to finalize a $50B loan for Ukraine, secured by frozen Russian assets, the EU and the G7 countries must make a political commitment to participate in this initiative at the end of October, said Vice President of the European Commission Valdis Dombrovskis.
“This will allow all creditors of the G7 and the EU to have enough time to start providing loans by the end of this year,” he clarified.
In particular, EU authorities should quickly adopt four legislative proposals:
- Establish a Ukraine Loan Cooperation Mechanism (ULCM) and provide EU macro-financial assistance loans to Ukraine.
- Direct 95% of the windfall profits generated by Russian assets to the EU budget, with 5% going to the European Peace Facility.
- Direct all the windfall profits that go to the EU budget toward the new Ukraine Loan Cooperation Mechanism.
- Amend the sanctions regime concerning immobilized assets to change the renewal period of these sanctions from the current six months to every three years.
If the individual contributions of the G7 creditors exceed €10B, the proposed EU loan of €35B will be reduced by the corresponding amount.