The European Commission has granted €3 billion from its special Macro-financial Assistance (MFA) to Ukraine. This amount is part of a loan that will be repaid through immobilised Russian assets. This MFA aims to provide economic support to Ukraine and restore vital infrastructure.
How does the MFA aid package work?
This support is essential due to Ukraines growing financial needs caused by the war. The loans up to €18.1 billion in 2025 are intended to cover military and civil expenses, ensure macroeconomic stability, and restore essential infrastructure.
The MFA offers favorable terms with maturities up to 45 years. Ukraine will repay this loan via immobilised Russian assets profit, sending a strong message that the costs of reconstruction are borne by Russia.
Previous MFA initiatives are extended by this loan mechanism, supporting Ukraines war effort and economy, with monthly disbursements until November of €1 billion and an extra €6.1 billion in December.
The commitment to Ukraine shows the determination to support the country in its fight against Russian aggression. Ursula von der Leyen confirmed that Europe continues supporting Ukraine for freedom and safety.
Background
Since the start of the war, the EU responded with sanctions and financial assistance. The immobilised Russian assets, estimated at €210 billion, are crucial in funding Ukraines recovery. These revenues are specially reserved for Ukraine according to recently set EU rules to support economic cooperation.