Ireland backs 'urgent' EU financing for Ukraine
Ukraine's president Volodymyr Zelenskyy at the Nato-Ukraine council working dinner in Brussels, last Thursday. Picture: Olivier Matthys/AP
Ireland has agreed to an EU funding mechanism to provide immediate financial support to Ukraine, which is trying to maintain “essential state functions” at a time of intensified Russian attacks.
The Department of Finance published a document, including an EU explanatory memorandum, for the Oireachtas on establishing a new financial system, capable of supplying up to €35bn to Ukraine.
Following agreement by the European Council on October 10, the proposed European Commission regulation now goes to the European Parliament for adoption, before returning to the council for formal regulation, with the aim of having it in place before the close of 2024.
The EU explanatory memorandum said that in light of “escalating Russian aggression” it is necessary to act swiftly to ensure Ukraine has access to the resources it “urgently needs”.
It said: “Swift financial support is vital to help Ukraine maintain essential state functions, ensure macroeconomic stability, and rehabilitate critical infrastructure.”
In its information note, the Department of Finance said the regulation proposes using the extraordinary revenues from Russia’s frozen assets to service and repay loans.
The department said it is “broadly positive” of the financial architecture of the mechanism.
It said the scheme is “designed to signal to Russia that there continues to be widespread practical and financial support to Ukraine’s economy as it continues to defend itself".
The department said it consulted with the Department of Foreign Affairs, Department of the Taoiseach, and the Department of Defence.
It said there is an “urgency” to the proposal in order to make it operational by the end of 2024.
