EU Parliament Approves pound 35 Billion Loan to Ukraine, Funded by Frozen Russian Assets

BRUSSELS: The European Parliament has approved a loan of up to pound 35 billion for Ukraine, to be repaid using assets frozen from Russia. The financial assistance aims to support Ukraine amid its ongoing conflict with Russia and is set to be disbursed by the end of 2025. According to Kuwait News Agency, the Parliament's endorsement of the macro-financial assistance (MFA) package is intended to bolster Ukraine as it faces the challenges posed by Russia's military actions. The loan is part of a broader effort to sustain Ukraine's public services and aid in repaying financial obligations to the European Union and other G7 nations. The assistance is contingent on Ukraine's adherence to democratic principles and respect for human rights. In a statement, the European Parliament detailed that this funding will also contribute to Ukraine's defense and reconstruction efforts. Ursula von der Leyen, President of the European Commission, emphasized that the allocation of profits from frozen Russian assets reflects the EU's commitment to supporting Ukraine's fight for survival. The European governments have agreed to this approach as part of their strategy to assist Ukraine. The pound 35 billion loan is part of a larger G7 initiative to provide up to $50 billion, approximately pound 45 billion, in financial support to Ukraine. The funding will be sourced from future revenues generated by Russian assets that remain frozen in the EU. As of now, around pound 210 billion in assets from the Russian Central Bank are held frozen due to sanctions imposed since the onset of the Russia-Ukraine conflict in February 2022.