European parliament committee approves €35 billion loan to Ukraine funded by frozen Russian assets

On 14 October, the European Parliament's Trade Committee approved the European Commission's proposal to provide Ukraine with a €35 billion loan, financed by frozen Russian assets.

According to the European Parliament's press service, the loan was supported by 31 members of the European Parliament's Trade Committee, with four voting against. No one abstained.

Earlier, the proposal was backed by the Council of the European Union, despite Hungary's opposition.

The next step is a vote by the entire European Parliament, scheduled for 21-24 October. Afterward, the regulation will be adopted by the EU Council through a written procedure and will take effect the day after its publication in the Official Journal of the EU.

The €35 billion loan is part of a plan agreed upon by the Group of Seven at their summit in June to provide Ukraine with a US$50 billion loan funded by taxes on the windfall profits from frozen Russian assets.

Ukraine will not be required to repay the loan, as it will not be financed by EU member states. Additionally, the funds will be non-targeted, allowing Ukraine to allocate them at its discretion.