EU to channel nearly €6 billion to Ukraine from frozen Russian assets

European Commission President Ursula von der Leyen confirmed that Ukraine will receive nearly six billion euros under the ERA loan and the Ukraine Facility. She made the announcement on November 13 during a speech in the European Parliament, following the European Council meeting conclusions on October 23.

“Today we will allocate almost six billion euros under the ERA loan and the Ukraine Facility,” von der Leyen stated, Caliber.Az reports.

She also highlighted the European Council’s commitment to covering Ukraine’s financial needs over the next two years, noting that three funding options are being considered.

“We are working closely with Belgium and all member states on options to fulfill this commitment. Option 1 is to use budgetary opportunities to raise funds in capital markets. Option 2 is to have an intergovernmental agreement under which member states will independently raise the necessary capital. Option 3 is a reparations loan based on immobilized Russian assets,” von der Leyen explained.

The Commission President clarified that the reparations loan would be funded from the remaining frozen Russian assets.

“We are providing Ukraine with a loan that Ukraine will repay if Russia pays reparations. This is the most effective way to support Ukraine’s defence and its economy. And the clearest way to make Russia understand that time is not on its side. We will show that, if necessary, we are committed to the long term. Because it is about our freedom. That Europe will be with Ukraine for as long as it takes,” she emphasized.

By Vafa Guliyeva