EU hails agreement with G7 members on $50-bln loan for Kiev

BRUSSELS. Oct 28 (Interfax) - The European Commission has hailed the consensus between EU and G7 members on the provision of loans totaling around $50 billion to Ukraine.

"This confirms that the EU and G7 partners fulfil the commitment they made in June at the Apulia G7 leaders' summit. These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Central Bank assets," the European Commission said in a communique published on Saturday.

"The consensus amongst G7 members was facilitated by the EU's creation of the Ukraine Loan Cooperation Mechanism," it said. According to the statement, the mechanism "will receive extraordinary revenues stemming from the immobilization of Russian sovereign assets and other voluntary contributions made by member states or third countries."

The funds will be disbursed "to repay the principal and interest on eligible bilateral loan agreements with lenders under the G7 Extraordinary Revenue Acceleration Loans for Ukraine initiative," it said.

"The EU will work with Ukraine and G7 partners to operationalize the Ukraine Loan Cooperation Mechanism and MFA loan by the end of this year. This would allow paying out the new EU macro financial assistance to Ukraine in 2025," the statement said.

Western media said on Saturday that G7 members had agreed on the provision of a $50-billion loan to Ukraine.