€12.5 billion from the Ukraine Facility and €18.1 billion from frozen Russian assets to fund the EU’s unprecedented 2025 aid to Ukraine, as it was reported after the EU summit. In total, the EU will allocate €30 billion to Ukraine in 2025, which will almost completely cover the country’s budget deficit.
Ursula von der Leyen, President of the European Commission, stated this at a press conference after an EU summit in Brussels.
Von der Leyen said that in 2025, Ukraine would receive funds through the EU’s Ukraine Facility and a joint initiative with the G7 to utilize extraordinary proceeds from frozen Russian assets for Ukraine’s benefit.
“We know that 2025 is going to be a decisive year… we have to put Ukraine in a position of strength. Looking back, Europe has so far provided Ukraine with almost €130 billion. We have secured economic and financial stability until the end of 2025. That is good news. And with the Ukraine Facility and our G7 loan, we are even covering most of Ukraine’s financing gap for 2025. This is a major achievement,” Ursula von der Leyen said.
2025 will be a crucial year for Ukraine and its partners, we discussed with @ZelenskyyUa
— Ursula von der Leyen (@vonderleyen) December 19, 2024
We will stand by Ukraine's right to fight for its freedom and choose its own destiny.
We will support Ukraine's economic stability, with over 30 billion € of EU support next year. pic.twitter.com/mjTDorrj4q
European Commission President Ursula added that the EU will start transferring its share of the loan of up to 35 billion euros within the G7 commitment in January. This is over 18 billion euros for 2025.
According to her, the aid will provide Ukraine with economic and financial stability until the end of 2025 and will also free up the country’s fiscal space for the purchase of military equipment.
“In other words, Putin’s strategy to push Kyiv into a financial abyss has completely failed,” added the President of the European Commission.
At the summit, the EU leaders have already approved conclusions regarding Ukraine. This document is signed by all summit participants. For comparison, the largest EU support for Ukraine in previous years of Russian full-scale aggression amounted to approximately €18 billion.
€12.5 billion will be allocated to Ukraine through the Ukraine Facility fund, while another €18.1 billion will come from extraordinary income generated from frozen Russian assets. In other words, Russia will pay over €18 billion to Ukraine.
The document also retains the phrase about frozen Russian assets, which was questioned by some delegations. It states that frozen Russian assets must remain frozen until Russia ends its war against Ukraine and compensates for all damages caused by the war. This means the EU will not compromise with Putin and will not allow the unfreezing of Russian Central Bank funds until Russia pays reparations to Ukraine, Espreso reported.
The EU document once again highlights that the bloc will continue to support Ukraine as long as necessary. This support will be provided in political, economic, humanitarian, military, and diplomatic spheres, at the intensity required to ensure Russia does not prevail, as stated in the document.
Earlier, the Council of the EU approved a package of assistance to Ukraine, which includes up to 35 billion euros in macro-financial assistance and a mechanism to support the repayment of loans of up to 45 billion euros. The funds will come from the profits of frozen Russian assets.
In late October 2024, the G7 finalized the terms of a US$50 billion loan to Ukraine initially agreed upon during a June summit in Italy. On 28 November, the EU and Ukraine signed a memorandum of understanding for €18.1 billion in macro-financial assistance, funded by proceeds from frozen Russian assets.
The European Parliament supported the European Commission’s proposal to establish a special mechanism, the Ukraine Loan Cooperation Mechanism. This mechanism would allow the proceeds from frozen Russian assets and voluntary contributions from member states or third countries to be used to cover the loan for Ukraine. The EU Council then approved the decision.
