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EU and G7 partners to provide $50 billion loan to Ukraine, to be repaid from frozen Russian assets

The European Union (EU), together with its G7 partners, will provide a USD 50 billion loan to Ukraine, to be repaid from frozen Russian assets, according to a European Council statement.

At an EU summit on Thursday, European leaders agreed that the funding will take the form of loans, secured and repaid with proceeds from the frozen assets, as well as future flows. The aim is to reach around EUR 50 billion together with G7 partners. “Under EU law, Russian assets must remain frozen until Russia ends its war against Ukraine and compensates it for the losses caused by that war,” the EU Council said in a statement.

The revenues from Russia’s frozen assets are to be used to support Ukraine’s military, strengthen its defense sector capacity and further reconstruct the country. The first disbursement is expected this summer.

EU leaders strongly condemn the recent escalation of hostilities by Russia and in particular the increased attacks against civilians and civilian and critical infrastructure. In this context, the leaders call for urgent reinforcement of support to Ukraine’s energy sector and call on the European Commission (EC) to speed up preparations for winter support to Ukraine.

Ukraine urgently needs air defense systems, ammunition and missiles, the EU Council said in a statement.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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