Partner countries from the Group of Seven are set to announce their contributions to the $50 billion initiative for Ukraine in New York on October 25. The approval by Members of the European Parliament of the resolution to establish a Cooperation Credit Mechanism and provide exceptional macro-financial assistance for Ukraine will allow this initiative to be implemented by the end of the year and ensure payments in 2025.
This was stated by European Commissioner for Justice Didier Reynders at the European Parliament in Strasbourg.
"G7 partners will announce their contributions to the $50 billion initiative for Ukraine in New York on October 25. We continue to work closely with our allies to ensure their contributions to the credit mechanism," he said.
According to Reynders, additional and urgent financial support is critically important for Ukraine.
"The approval by the Members will enable the proposal to establish a Cooperation Credit Mechanism with Ukraine and provide macro-financial assistance loans by the end of this year," the commissioner said, adding that such EU support should serve as a lifeline for Ukraine.
Reynders explained that the Cooperation Credit Mechanism is an instrument aimed at collecting windfall profits derived from frozen Russian assets and providing them to Ukraine to repay loans from EU and G7 partners, as well as potentially from other countries willing to join the initiative "Emergency Loans to Accelerate Budget Inflows."
He noted that this initiative also introduces some innovative features.
"First, Russia is held accountable for its actions. The loan is not imposed on the victim of the attack but is to be repaid by the aggressor. Second, the European Commission's proposal includes permission to grant a loan of up to €35 billion with an automatic adjustment. This means that the European Commission envisions a mechanism for automatic adjustment if G7 creditors provide an amount that exceeds the total risk volume agreed upon with the EU," he detailed.
Recall that G7 leaders committed in June 2024 in Naples to provide Ukraine with approximately $50 billion in so-called "emergency loans to accelerate budget inflows."
