European Commission Continues Work on Supporting Documents for €90 Billion Loan to Ukraine

The European Commission is diligently working on the preparation of essential supporting documents required for the provision of a €90 billion loan to Ukraine. This significant decision was unanimously adopted by all member states of the European Union during a European Council meeting held in December of last year. However, the execution of this decision is currently hindered by Hungary, which justifies its veto by claiming that Kyiv is obstructing the supply of Russian oil.

This information was disclosed by Balázs Ujvári, the spokesperson for the European Commission on economic matters, during a press briefing in Brussels on Tuesday. According to Ujvári, the European Commission is actively engaged in preparing the necessary documents to facilitate the first tranche of the loan as soon as Hungary lifts its veto.

Ujvári emphasized that several crucial documents must be prepared to implement the macro-financial assistance program for Ukraine, including a Memorandum of Understanding that will serve as the foundation for the new program. Additionally, there are plans to update the assistance mechanism for Ukraine, known as the Ukraine facility, which will be an important channel for distributing part of the aid. Furthermore, a loan agreement between Ukraine and the European Union needs to be developed.

The spokesperson for the European Commission underscored that a consensus was reached among the 27 member states in December regarding the provision of this loan. "We expect all member states to fulfill their commitments," he stressed. Ujvári also noted that a significant step was taken last week when the European Commission gave the "green light" to the Ukraine Financing Strategy, which outlines Ukraine's needs for this year.

This document contains information regarding the amount of funding required by Ukraine in the areas of defense and budgetary support. Following this, the document was submitted to the Council of the European Union, and now the European Commission is awaiting its approval. Ujvári expressed hope that the document preparation process would be completed as swiftly as possible so that Ukraine could receive the necessary financial support during this challenging time.

It is important to recall that the decision to provide Ukraine with a €90 billion loan was made in the context of supporting the country amid military aggression from Russia. This loan is expected to be a crucial element of Ukraine's financial stability and assist in overcoming the economic difficulties the country is facing due to the ongoing war.