EU to grant €35 billion loan to Ukraine using profits from frozen Russian assets

The European Parliament approved a €35 billion EU loan to Ukraine as part of a larger G7 loan of approximately €45 billion, which will be repaid using profits from frozen Russian assets.

This decision was supported by 518 MEPs, and 56 voted against. The debate before the vote had lasted for several hours.

"With this vote we are sending a very strong message that we are using profits from Russian frozen assets for Ukraine and Russia as an aggressor must and will pay," European Parliament President Roberta Metsola stated.

It is noted that the final amount the EU will provide as a loan may be lower, depending on the contributions made by other G7 countries.

On the morning of 22 October, the UK officially announced its contribution to the G7 loan – nearly US$3 billion.

The latest media reports show that the US is prepared to provide Ukraine with up to US$20 billion as part of the G7 loan. Until recently, it was expected that Washington's contribution would be less than initially planned, as the EU (due to Hungary's opposition) was unable to implement a safeguard guarantee that Russian assets would remain frozen for at least three years.