On the proposal for a regulation of the European Parliament and of the Council establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine
BUDG-AD-763267
Committee on Budgets · Rapporteur: Janusz Lewandowski
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
The Committee on Budgets gives its budgetary assessment of the proposed regulation establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine, and calls for its approval.¶¶ It notes the mechanism's non-repayable support of up to EUR 45 billion and the new MFA instrument of up to EUR 35 billion over 45 years, funded by revenues from immobilised Russian assets and voluntary contributions.¶¶ It requests clarifications on budget liability, interplay with the Ukraine Facility, and details on liabilities to the headroom, and stresses the need for adequate resources.¶¶¶
Committee position. The Committee on Budgets calls on the Committee on International Trade to recommend approval of the proposed regulation, while requesting clarifications on budget liability and other aspects.¶
Key points
- Takes note of the Ukraine Loan Cooperation Mechanism providing non-repayable support to help Ukraine repay loans, endowed mainly by transfers under Annex XLI to Council Regulation (EU) 833/2014 and voluntary contributions, up to EUR 45 billion.¶
- Takes note of conditions for Ukraine to receive support, including repayment of principal, interest and other costs of the MFA loan or eligible bilateral loans.¶
- Takes note of the new MFA instrument providing up to EUR 35 billion over 45 years, based on assumptions about immobilised Russian assets and future revenue flows.¶
- Takes note that there is no grace period for repayment and no option for interest rate subsidies covered by Member States.¶¶
- Takes note of preconditions for support, including democratic mechanisms, rule of law, and human rights, and consequences of not meeting them.¶
- Calls on the Commission to consult the Verkhovna Rada and involve stakeholders, including civil society, in the Memorandum of Understanding negotiations.¶
- Calls for caution in extending borrowing without a clear guarantee mechanism, as the External Action Guarantee will not be used and guarantees will be provisioned by the headroom.¶
- Recalls mandatory provisions in the MFA Loan Agreement, including early repayment in case of fraud or corruption.¶
- Takes note of repayment arrangements, including the waterfall structure, and calls for information to Parliament and the Council as per the Interinstitutional Agreement.¶¶
- Regrets lack of clarity on whether the Union budget has final liability, and requests clarification on interplay with the Ukraine Facility and details of liabilities to the headroom.¶¶¶
- Recalls that a further MFF amendment would be required to extend the ability to treat financial assistance to Ukraine like assistance to Member States until the end of the current MFF.¶
- Regrets the urgency of the proposal and calls on the Committee on International Trade to recommend approval.¶¶
Who is affected
- Ukraine: receives non-repayable support and loans under the mechanism and MFA, subject to conditions and repayment obligations.¶¶
- EU institutions: Commission must provide clarifications and information; Parliament and Council exercise oversight.¶¶¶
- Member States: may make voluntary contributions; Council must approve any MFF amendment.¶¶