• 11/15/2024

EU formally approves up to €35 billion for Ukraine using proceeds from frozen Russian assets

Pravda Ukraine

The EU Council officially approved a loan of up to €35 billion for Ukraine, funded by taxes on windfall profits from frozen Russian assets, on 23 October.

Source: Hungarian presidency of the EU Council on X (Twitter), as reported by European Pravda

Details: The approval of the €35 billion loan mechanism for Ukraine was made under a written procedure. The decision will officially come into force the day after its publication in the Official Journal of the EU.

Background: 

  • The €35 billion loan is part of a plan agreed upon by the Group of Seven (G7) during the June summit, which includes providing Ukraine with a total of US$50 billion, financed by taxing windfall profits from frozen Russian assets.
  • Ukraine will not be required to repay this loan, as it will not be funded by EU member states. Furthermore, the funds will be non-earmarked, allowing Ukraine to allocate them at its discretion.
  • On Tuesday, the European Parliament approved the EU’s contribution to the €35 billion loan (approximately US$38 billion), although this amount is expected to decrease once the US makes its contribution.

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https://www.pravda.com.ua/eng/news/2024/10/23/7481061/