The ambassadors of the EU countries took another step towards providing Ukraine with 90 billion euros

The ambassadors of the member states of the European Union agreed on the legal basis for providing Ukraine with a loan of 90 billion euros on the basis of joint borrowings of the European Union. This was reported by the Council of the EU based on the results of the diplomats’ meeting.

“Today’s agreement demonstrates that the EU continues to resolutely support Ukraine and its people… Together with the European Parliament, I hope to complete the preparation of legal texts as soon as possible, which will allow to start providing these loans,” commented the decision of the Minister of Finance of Cyprus, who currently chairs the Council of the EU, Makis Keravnos.

The ambassadors agreed to the initial proposal of the European Commission regarding the allocation of funds. 30 billion euros will be directed to macroeconomic support of Ukraine through the mechanism of macro-financial assistance (MFA) or within the Ukraine Facility – a special EU instrument to ensure stable and predictable financial support of Ukraine.

EUR 60 billion will be used to strengthen Ukraine’s ability to invest in the defense industry and purchase military equipment. It is about access to both Ukrainian and European defense products.

The ambassadors of the EU states confirmed that priority in the purchase of defense equipment is given to the markets of the European Union, Ukraine, Norway, Iceland, and Liechtenstein. At the same time, exceptions are permissible if Ukraine urgently needs weapons that are not available in Europe.

Read also: Military and budgetary needs: the European Commission has determined how Ukraine will spend 90 billion euros of aid

Funding, as stated in the message, will be connected with the observance of strict conditions by Ukraine, such as: the rule of law and the fight against corruption. Interest on the loan will be covered from the EU budget. This will not affect the budget contributions of the Czech Republic, Hungary, and Slovakia, which decided not to participate in the initiative.

The next step is to obtain the written consent of the European Parliament to amend the current regulation on multiannual financial support in order to guarantee financial assistance within the framework of the EU budget.

After the completion of all steps, the EU Council said, the European Commission will be able to pay the first payment at the beginning of the second quarter of this year.

EU leaders in December approved the decision to provide Ukraine with 90 billion euros for the next two years. It is a loan supported by the EU budget, and not a reparation loan, which was discussed earlier.