The European Union agreed to provide Ukraine with a €35 billion loan

The Council of the European Union approved a package of financial loans to Ukraine in the amount of up to €35 billion, which is part of the blocʼs obligations in implementing the relevant G7 decision regarding the frozen assets of the Russian Federation.

This is stated on the website of the Council of the EU.

"The Council reached an agreement on a package of financial assistance to Ukraine, including an exceptional macro-financial assistance loan of up to EUR 35 billion and a credit cooperation mechanism that will support Ukraine in repaying loans of up to EUR 45 billion by the EU and G7 partners," the message reads.

This aid is aimed at immediate satisfaction of Ukraineʼs urgent financing needs, which have increased due to increased Russian aggression against Ukraine.

We are talking about the European share of the loan for $50 billion (€45 billion) from the G7, which will be repaid with future profits from investing the frozen sovereign assets of the Russian Federation.

The EU plans for funds to become available to Ukraine from 2024, and the loan to be repaid within a maximum of 45 years.

The Council of the EU must approve the decision by written procedure after the European Parliament adopts the text in the first reading. The decision will then enter into force the day after its publication in the Official Journal of the EU.

Frozen Russian assets

The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash. In June 2024, the "Big Seven" countries agreed to provide Ukraine with a $50 billion loan by the end of the year, which will be repaid with profits from Russian assets.

Ukraine has already received several tranches of aid from the EU proceeds from frozen Russian assets. And on September 20, the head of the European Commission Ursula von der Leyen informed that the European Union will provide Ukraine with a €35 billion loan at the expense of the frozen assets of the Russian Federation. The day before, on September 19, she announced that the European Union would allocate €160 million to support Ukraineʼs energy security ahead of winter. Part of the amount will be provided from frozen Russian assets.

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