The European Commission is planning a €35 billion loan for Ukraine, which will be covered by interest income from frozen Russian state assets, European Commission President Ursula von der Leyen announced in Kiev on Friday.
The money is the European part of the $50 billion (about €44.82 billion) loan that the G7 countries have planned for Ukraine.
The G7 has decided on new financial support
The seven major Western industrialized countries (G7) decided at their summit in June to provide new financial support to Kiev. Originally, the EU and the US were supposed to support the G7 loan with 20 billion dollars each. The Financial Times wrote on Friday, citing three unnamed sources, that the EU’s share would also have to be reduced if the US joins the aid at a later date.
The US is demanding that the EU sanctions regime be changed first. Currently, the freeze on Russian assets must be confirmed every six months – although the US probably fears that Russia-friendly Hungary could block this. In that case, the money would be released again, which would also mean that the money needed to secure the loan would be gone. As Reuters recently reported, Brussels is working on a solution in the background.
The loan is still subject to approval
As the European Commission explained in a press release, the loan still needs to be approved by the EU Parliament and a qualified majority of EU member states.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
