Commission proposes up to €35 billion MFA loan for Ukraine as the EU's contribution to the EU-G7 support of up to €45 billion

The European Commission took a decisive step in reinforcing support for Ukraine by proposing a comprehensive financial assistance package, consisting of a Ukraine Loan Cooperation Mechanism of up to €45 billion, and an exceptional Macro-Financial Assistance (MFA) loan of up to €35 billion.

This package leverages extraordinary profits from immobilized Russian assets, sending a clear signal that the burden of rebuilding Ukraine will be shouldered by those responsible for its destruction. This approach will be applied for the first time in a structured way and at such a scale across EU and G7 lenders, ensuring long-term, stable financial support for Ukraine’s recovery and resilience.

Ukraine loan cooperation mechanism

The Commission first proposes to establish a Ukraine Loan Cooperation Mechanism which will support the EU and G7 partners in issuing loans of up to €45 billion to Ukraine. As Ukraine continues to face unprecedented challenges due to Russia’s intensified aggression, this proposal underscores the EU’s unwavering commitment to Ukraine’s sovereignty and economic resilience.

The Ukraine Loan Cooperation Mechanism will offer Ukraine support financed by leveraging the financial contribution raised on extraordinary windfall profits stemming from immobilized Russian Central Bank assets.

Ukraine can use this support to repay eligible loans from the EU and other lenders participating in the G7’s ‘Extraordinary Revenue Acceleration Loans for Ukraine’ (ERA) initiative.

Exceptional macro-financial assistance

As the EU’s contribution to these loans under the ERA initiative, the Commission is proposing an exceptional MFA loan of up to €35 billion. This financial support is crucial for addressing Ukraine’s urgent budgetary needs, which have considerably risen in the face of intensified and prolonged Russian aggression, including under the IMF’s Extended Fund Facility arrangement. The remaining loan amount covered is to be provided by other G7 partners.

This comprehensive financial package fulfills the commitments made during the G7 Leaders’ Summit in Apulia on 15 June and during the European Council on 27 June.

Through this package, the European Commission reaffirms its commitment to stand by Ukraine in times of need, ensuring that the EU’s support remains steadfast and effective.