The European Parliament approved on Tuesday the creation of a financial instrument worth EUR 50 billion to support the reconstruction and modernization of Ukraine from 2024. – We call on the member states to allow the use of frozen Russian assets to finance the reconstruction of Ukraine – appealed the co-rapporteur of the resolution from the Committee on Budgets, Eider Gardiazabal Rubial.
On June 20, 2023, the European Commission proposed the creation of a special instrument for Ukraine worth up to EUR 50 billion for the period from 2024 to 2027 in the form of grants and loans.
Reconstruction of Ukraine with Russian assets
The MPs want the assets of the Russian Federation and other entities or persons directly related to Russia’s attack on Ukraine to be used to rebuild Ukraine. Parliament tightened rules on combating fraud, corruption, conflicts of interest and irregularities in the use of EU funds in Ukraine. MEPs added the principle that companies under the influence of oligarchs should not be eligible for financing. An online portal will be created devoted to financial assistance provided to Ukraine and its goals. It will also record the conditions that Ukraine has met to receive this aid. MEPs also want to disclose what financial resources Ukraine received from third countries and international organizations. – The European Union reaffirms its solidarity with Ukraine through a EUR 50 billion instrument supporting the country’s resistance to aggression and supporting reforms in the context of potential accession to the European Union. We call on member states to allow the use of frozen Russian assets to finance the reconstruction of Ukraine and emphasize the importance of the involvement of the Verkhovna Rada (parliament) and Ukrainian civil society, said Eider Gardiazabal Rubial (EPP), co-rapporteur of the resolution from the Committee on Budgets.
The budget requires adjustments
The Ukraine Facility is part of the ongoing review of the Union’s long-term budget. The budget requires adjustments as it has been severely depleted by the numerous crises that have occurred since 2021. MEPs insist that the instrument must be agreed as soon as possible during the review of the entire budget. From 2024, the regulations regarding aid to Ukraine will no longer apply. This package should also be included in next year’s annual budget, which will be negotiated in November. As soon as the Council agrees on a common position, negotiations with the Member States can start.
Main photo source: PAP/EPA/KATERYNA KLOCHKO