Approval from Europe: Loan to Ukraine using Russian assets

The EU will provide a 35 billion euro loan to Ukraine, using Russia's frozen assets as collateral. 

The European Parliament (EP) committee has approved the European Union's (EU) plan to provide a 35 billion euro loan to Ukraine, using the proceeds from Russia's frozen assets as collateral, as part of a G7 commitment.

The initiative to support Ukraine using Russia's frozen assets was discussed at the EP Trade Committee meeting held in Brussels.

Committee members approved the provision of a 35 billion euro loan to Ukraine by the EU, using the proceeds from Russia's frozen assets as collateral as part of a G7 commitment of approximately 45 billion euros, with 31 votes in favor and 4 against.

Meanwhile, under the initiative prepared to support Ukraine's urgent financing needs, the revenue stream generated from Russia's frozen assets will be used to repay the loans provided by the EU and G7 partners.

The initiative is expected to be voted on at the EP General Assembly session to be held on October 21-24.

G7 leaders agreed in June to provide a 50 billion dollar loan to Ukraine, using the profits generated from Russia's frozen assets as collateral.

Since the start of the Russia-Ukraine War, Western countries have frozen approximately 300 billion dollars in Russian assets. About 200 billion dollars of this amount is held in EU countries.

The frozen assets generate billions of dollars in interest income each year. G7 countries, led by the US, want to use this income to support Ukraine.

News Source: AA