EU countries approve 35 bln euros loan for Ukraine using frozen russian assets - mass media
Kyiv • UNN
EU member states have agreed on a plan to lend 35bn euros to Ukraine using frozen assets of the Central Bank of Russia as collateral. This is part of a wider G7 initiative to provide Kiev with 45bn euros in aid.
European Union countries have given the green light to an unprecedented plan to issue a €35 billion loan to support Ukraine's war-torn economy using immobilized assets of the Central Bank of Russia as collateral, reports UNN citing Euronews.
The media outlet notes that the deal is part of a broader initiative by G7 allies to provide 45 billion euros ($50 billion) to Kiev as soon as possible. Ukraine is struggling to contain a renewed Russian offensive that has severely damaged its energy system and depleted its military reserves.
According to EU officials, the 35bn euros will be “undesignated” and “untargeted”, which means that the Ukrainian government will have maximum flexibility in spending the aid. Brussels hopes to start handing out the money early next year.
The agreement reached by the ambassadors on Wednesday night came a day after Hungary confirmed it would block a key change to the EU sanctions regime until the United States elects its next president on Nov. 5.
The media outlet notes that the agreement signed on Wednesday, which still needs to be ratified by the European Parliament, paves the way for the EU to increase its multi-billion dollar share by the end of the year and begin payments in early 2025.
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Under the G7 plan, the windfall profits from the assets would be used to gradually repay the amount of money each ally lends to Ukraine. If these profits are no longer available, the West will have to pay the bill.
The EU and the US were originally expected to contribute to the loan in equal installments of 18 billion euros ($20 billion) each, but a lack of specifics from Washington forced Brussels to sharply increase its share to 35 billion euros.
The bloc's contribution could be reduced if the U.S., Canada, Britain and Japan end up making larger pledges. Australia, which is not a member of the G7, could also contribute.
