Brussels: Europe and the Arabs
The European Commission today disbursed the first tranche of €3 billion of the exceptional macro-financial assistance loan to Ukraine, which will be repaid from the proceeds of Russian assets frozen in the EU. This loan, amounting to €18.1 billion, represents the EU’s contribution to the G7-led Extraordinary Revenue Acceleration Loan Initiative, which collectively aims to provide nearly €45 billion in financial support to Ukraine. This initial disbursement highlights the EU’s unwavering commitment to helping Ukraine confront Russia’s all-out war of aggression, maintain macroeconomic and financial stability, rebuild critical infrastructure, including energy systems, and invest in defence infrastructure. According to a statement issued by the European Commission headquarters in Brussels today, Friday, which also stated: “This macro-financial loan is crucial to address Ukraine’s urgent financial needs, which have increased significantly in the face of Russia’s intense and protracted war of aggression. Thanks to stable, regular and predictable financial support of up to €18.1 billion for 2025 under this instrument, Ukraine will be able to support its current and future military, budgetary and reconstruction needs. This loan will ensure macroeconomic stability and restore critical infrastructure destroyed by Russia, such as energy infrastructure, water systems, transport networks, roads and bridges. Moreover, Ukraine can use the loan to directly support its military expenditures. At the same time, by stabilizing public finances, this assistance will also enable Ukraine to allocate resources to other priority expenditures, including military defence infrastructure against Russian aggression. Since the beginning of Russia’s war of aggression against Ukraine, the European Union, together with its Member States, has unequivocally condemned Russia’s actions and offered unprecedented support to Ukraine and its people. Through the disbursement of this multilateral loan, the EU, Member States and European financial institutions have together provided nearly €134 billion, to support the Ukrainian war effort and economy, help maintain essential services, provide early reconstruction and humanitarian assistance and help those who have fled the war in the EU.