Ukraine will receive up to €35B from the EU as part of the $50B G7 loan secured by frozen Russian assets.

Ukrainian Finance Minister Serhiy Marchenko signed a memorandum and a loan agreement with the EU to receive up to €35B in macro-financial assistance (MFA). These funds are part of the G7 initiative to provide a mechanism for additional loans to increase Ukrainian budget revenue. The final amount of MFA will be determined after the loan is approved by all parties. Considering the proposed US funding of $20B, macro-financial assistance from the EU may amount to $18B.

“The loan will be repaid exclusively through future profits from Russian sovereign assets frozen in the EU. Thus, it is expected that all MFA funds for Ukraine will be on an irrevocable basis,” the Ministry of Finance emphasized.

Among the areas where the funds are planned to be spent are macro-financial stability, state-owned enterprises, public administration, energy, the rule of law and the fight against corruption, and the defense industry.

US Secretary of State Antony Blinken said the US and the EU already have a coordinated plan to transfer these funds to Ukraine.