20-01-2025

R. Šadžius: "Use of frozen Russian assets for Ukraine's needs – an important message of solidarity and unity"

On 20-21 January, Minister of Finance Rimantas Šadžius will take part in the meetings of the Eurogroup (EG) and the Economic and Financial Affairs Council (ECOFIN) of the European Union (EU) in Brussels. The meetings will focus on the Programme of Poland, which took over the presidency of the Council of the EU, ensuring support to Ukraine and the euro area's priorities at the start of the new political cycle.

At the ECOFIN meeting, ministers will exchange views on the economic and financial impact of the Russian aggression against Ukraine. In October last year the G7 countries reached an agreement to provide USD 50 billion (EUR 45 billion) in loans to Ukraine, of which EUR 18 billion will be the EU funds. The proceeds from Russia's frozen assets will be used to repay this loan.

“We are delighted that the first funds from this loan mechanism are already reaching Ukraine. Last year's agreement to use frozen Russian assets for Ukraine's needs is an important message of solidarity and unity for Ukraine. It is important to ensure that this decision is not the last step in using frozen Russian assets to defend Ukraine. We must work towards a future decision on the transfer of these assets to Ukraine in the form of war reparations or otherwise”, Šadžius said.

At the ECOFIN meeting, ministers will also be presented with the Programme of the Polish Presidency. Poland singles out strengthening the EU's security and resilience in various areas as a key objective and priority. Among the most important tasks, it emphasizes ensuring long-term support for Ukraine, smooth implementation of the new economic governance framework, and the fight against harmful tax competition. Priorities include the reform of the Customs Union, including the creation of an EU Customs Agency, the preparation of the negotiations on the post-2027 EU Multiannual Financial Framework (MFF), and the smooth implementation of the Recovery and Resilience Facility (RRF).

ECOFIN will also hold a policy debate on ensuring a competitive business environment in Europe, approving Council recommendations on medium-term fiscal-structural plans prepared by Member States and assessed by the EC, and Council recommendations under the excessive deficit procedure. The European Commission (EC) will also present part of the 2025 European Semester: Alert Mechanism Report and recommendations for the euro area.

At the EG meeting, ministers will have a strategic policy discussion on the main policy priorities for the euro area (EA) and on the role of the EG in their implementation. The EC will be invited to present its main economic priorities in the new EU institutional cycle. The EC's main economic policy priorities include facilitating business and deepening the EU's single market, strengthening the EU's competitiveness, and making progress on the Capital Markets Union and the Banking Union.

At the EG meeting ministers will also discuss the draft euro area recommendations for 2025, innovation in wholesale payments and the advancement of the digital euro project.