Regulation of the European parliament and of the Council establishing the loan cooperation mechanism and providing macro-financial assistance to Ukraine

Jazić Aleksandar (Institut za međunarodnu politiku i privredu, Beograd), jazic@diplomacy.bg.ac.rs

Ukraine has suffered significant material destruction since the start of the conflict with Russia in 2022 and therefore requires significant material resources to maintain its macro‐financial stability. Ensuring Ukraine’s macro‐ financial stability is extremely important for its post‐war reconstruction, which is why the European Parliament and the Council adopted Regulation 2024/2773 on Establishing a Loan Cooperation Mechanism and providing exceptional macro‐financial assistance on October 24, 2024. Through this mechanism, the European Union (EU) should allocate appropriate financial resources to Ukraine. In addition to EU Member States, third countries could also participate in financing Ukraine’s post‐war reconstruction. However, the granting of loans and credits implies the fulfilment of certain conditions controlled by the European Commission. Failure to meet them could lead to the suspension of funding. Some of these conditions also concern the end of the military conflict with Russia.

Keywords: EU, cooperation mechanism, loans, provision of exceptional macro‐ financial assistance, Ukraine, emergencies, Serbia