EU envoys approved a plan to provide Ukraine with up to 35 billion euros as part of a larger $50 billion loan from the Group of Seven (G7) nations, backed by frozen Russian central bank assets, Reuters reports.
This decision follows a June announcement by the G7 and EU to provide a $50 billion loan to assist Ukraine, funded by the profits from 210 billion euros of immobilized Russian central bank assets, which were frozen following Russia’s invasion of Ukraine in February 2022. The European Parliament will vote on the proposal on October 22, aiming for loan disbursement in 2025, with repayment over 45 years. The agreement allows the EU to guarantee the loan using its budget if the restrictions on the assets are lifted, although sanctions must be renewed every six months with unanimous approval.
Hungary, holding the EU’s rotating presidency, could obstruct renewal efforts due to its Russia-friendly stance and is delaying discussions on the renewal until after the US elections in early November. The European Commission had proposed extending the renewal period from six to 36 months, but Hungary did not advance this proposal.
