Shortly after the breakthrough in negotiations with the US, the EU Council approved plans for new billions in loans for Ukraine. The negotiated deal provides Kiev with a cash injection – and will be refinanced through frozen assets.
The adopted legal texts specifically stipulate that interest income from the Russian Central Bank’s assets frozen in the EU must be used to repay the loans. These will be passed on to Ukraine in the future in the form of financial aid, the representative of the member states said on Wednesday evening.
As part of the sanctions imposed by the EU on Russia, approximately 210 billion euros in assets of the Russian central bank have been frozen since February 2022. The extraordinary interest income from this is currently estimated at a maximum of 2.5 to 3 billion euros per year.
Billions flow after successful negotiations
Shortly before the EU decision, the US announced its intention to contribute $20 billion to a loan package worth up to 50 billion euros from the group of major Western industrialized countries (G7). The EU had previously announced a maximum contribution of 35 billion euros, although a loan of 18 billion euros is now planned, according to German Finance Minister Christian Lindner.
Another $10 billion will be provided by Britain, Canada and Japan. According to information on Wednesday evening, the EU loan should be paid out this year. The term is set at a maximum of 45 years.
Source: Krone
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