G7 partners to announce their contributions to $50 bln initiative for Ukraine in New York on Oct 25 – Commissioner Reynders
European Commissioner for Justice Didier Reynders says that G7 partners will announce their contributions to an initiative to provide Ukraine with an exceptional loan of $50 billion in New York on October 25, which will be repaid with windfall revenues from immobilized Russian assets.
He made the announcement on Tuesday in Strasbourg at the European Parliament as part of a debate on a report on the European Union’s contribution of EUR 35 billion to the initiative.
"Later this week, on the 25th of October, in Washington, G7 partners will announce their contributions," the European Commissioner said.
"The Ukraine Loan Cooperation Mechanism is an instrument aimed at collecting the wilful profits stemming from the Russian immobilised assets and making them available to Ukraine for the repayments of the loans of the EU and G7 partners and potentially other countries wishing to join the Extraordinary Revenue Acceleration Loans initiative. This means Russia will pay for the damage of the war in Ukraine. And you know that we had two main goals, the fight against impunity on one side, but also the certainty that Russia will pay for the damage caused by the aggression against Ukraine. Second, the EU's contribution to the G7 agreed era initiative will come through an exceptional macrofinancial assistance loan of up to 35 billion euro. Similarly to our previous operations, this MFA loan will be linked to the fulfilment of political preconditions and specific policy conditions to be established under a Memorandum of Understanding with Ukraine," he detailed.
"MFA loan introduces some innovative features. Let me mention in particular the following ones. First, Russia is made accountable for its actions. The loan is not expected to rate on the one who was attacked, but it is paid back by the aggression. Second, the Commission's proposal provides an authorisation to lend up EUR 35 billion with an automatic correction mechanism should G7 lenders come in with amounts that would take the total exposure over the agreed gap," Reynders said.
