EU formally approves up to €35 billion for Ukraine using proceeds from frozen Russian assets
2024/10/23 - 20:25
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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