On Wednesday 9 October, the Member States of the European Union reached agreement by a qualified majority on the mechanism designed to implement the decision by the G7 countries to grant Ukraine bilateral loans totalling $50 billion, which would be pledged against the future income generated by the Bank of Russia’s assets frozen in the EU (see EUROPE 13499/20).
This agreement covers three texts which will enable the EU: - to grant Kyiv further macrofinancial assistance of up to €35 billion; - the creation of the Ukraine Loan Cooperation Mechanism (ULCM), financed in particular by future profits from the Bank of Russia’s frozen assets, through which Ukraine will repay bilateral loans contracted with the EU and G7 countries.
According to our information, France questioned the maximum amount of the EU loan, but did not oppose it.
The Hungarian Presidency of the Council has indicated, via X, that these texts will be adopted by written procedure once the Parliament has adopted its decision. An European Parliament vote is scheduled for the second plenary session in October. The EU Council and Parliament have agreed not to amend the substance of the three legislative texts.
On the other hand, there is no unanimity in the EU Council on the fourth legislative proposal aimed at increasing from 6 to 36 months the duration of sanctions against the assets of the Bank of Russia. Hungary would like the issue to be addressed in November, after the US elections, although it could be discussed at the European Council on 17 and 18 October. This extension of the duration of the sanctions is a request from the United States and would be a condition for the granting of the American bilateral loan.
See the proposal to introduce the ‘ULCM’ system: https://aeur.eu/f/dk1 (Original version in French by Mathieu Bion)