The European Parliament has approved a loan of up to 35 billion euros for Ukraine, backed by frozen Russian assets, to help with the country’s economy, military, and electricity grid. This is part of a larger $50 billion initiative agreed upon by G7 powers in June. The EU is the first to announce its contribution, with other G7 countries expected to reveal theirs at a meeting in Washington. The EU’s loan amount may vary based on other countries’ contributions. The EU has frozen around $235 billion of Russian assets since the invasion of Ukraine in 2022.
Additionally, the G7 plan aims to use interest earned on the frozen assets to provide more funding to Ukraine. Implementing the loan has been delayed as the US seeks assurance that the assets will remain frozen. Currently, EU members must agree every six months to extend the asset freeze, with Hungary opposing an extension to 36 months. The EU’s latest loan is in addition to approximately 120 billion euros in support provided to Ukraine since Russia’s invasion.
