EU Countries Will Provide Ukraine With Loan Of € 35 Billion Due To Frozen Russian Assets

The EU Council agreed on a new package of financial assistance to Ukraine, including an exceptional macropinance loan of 35 billion euros and a mechanism for supporting loans to Ukraine from EU partners and G7 in the amount of up to 45 billion euros.

The statement notes that financial assistance will contribute to the satisfaction of urgent financial needs of Ukraine, and to repay loans from the EU and partners G7, income from frozen Russian assets will be used.

The statement also states that a loan of 35 billion euros is an EU contribution to the total credit of the G7 in the amount of 45 billion euros and will include various provisions on management systems, control and prevention of fraud.

Borrowing to finance the EU loan to Ukraine will be supported by a guarantee from the EU budget, it is noted in a statement that emphasizes that their goal is to make a loan available this year.

The statement recalls that the approval of the European Parliament is required to provide a loan at this stage.

The leaders of the G7 countries in June agreed to provide Ukraine with a loan of $ 50 billion as security using income from frozen assets of the Russian Federation.

Since the beginning of the Russian-Ukrainian war, Western countries have froze Russian assets worth about $ 300 billion. About 200 billion dollars out of this amount are in the EU countries.

Frozen assets bring billions of dollars of interest income every year. G7 countries, first of all, the United States, want to use this income to support Ukraine.