The €18 billion will cover roughly half of the estimated €3-4 billion monthly funds that Ukraine needs in 2023.
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The money will be used to support essential public services. Support is needed to run hospitals, schools and provide housing for relocated people. It will also support macroeconomic stability and the reconstruction of critical infrastructure destroyed by Russia. The loan obtained by the EU from the financial markets will be disbursed in quarterly installments, maintaining continuity and predictability. It is also necessary for maintenance Ukraine on the surface during the war.
The loan to Ukraine is conditional. It requires reforms that will strengthen the country's institutions and prepare it for both reconstruction and EU membership. The conditions, which are verified by the Commission before each tranche, include measures to fight corruption, reform the judiciary, respect for the rule of law, good governance and modernize institutions. The regulation was adopted with 507 votes in favour, 38 against and 26 abstentions.
Ukraine fights for European values
EP President Roberta Metsola said after the vote: “Ukraine is fighting for European values. The European Parliament and the European Union have shown extraordinary solidarity with Ukraine on the humanitarian, military and financial fronts. Importantly, we granted Ukraine candidate status for EU membership. Yesterday we started the European campaign "Hope Generators"for Ukraine to survive the winter. Today we approved by a large majority and in record time a support package of EUR 18 billion to survive the war and rebuild critical infrastructure.'
Sandra Kalniete, standing rapporteur on Ukraine in the Committee on International Trade, said: “Ukraine has already endured 273 days of this brutal war. Russia has violated every imaginable international law by firing 4700 rockets at Ukrainian cities and critical infrastructure, resulting in the deaths of thousands of civilians. However, the Ukrainian people have never been more united and their army more motivated to continue to liberate their country. Ukraine needs to know that it can count on European support for as long as necessary. The EU is ready to provide regular and predictable financial assistance to help cover a significant part of Ukraine's immediate financial needs in 2023.
EU Member States have already contributed €19,7 billion to Ukraine
Since the start of the war, the EU and its member states have provided Ukraine with €19,7 billion. Much of this was received by Ukraine in the form of macro-financial assistance approved by the EP in September and July.
The loan now needs to be unanimously approved by the Council on 6 December before the Commission can take advantage of the markets and disburse support in early 2023.
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Source: European Parliament
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