European countries have approved the provision of a €35 billion loan to Ukraine, using revenues from frozen Russian assets. This decision must be confirmed by the European Parliament. The support is aimed at meeting Ukraine’s urgent financial needs arising from Russian aggression.
Ukrainian President Volodymyr Zelensky stated that the government plans to allocate the funds for air defense, energy infrastructure, the construction of shelters, and domestic weapons production.
This loan is part of the G7 initiative to provide Ukraine with a total of $50 billion. Ukraine will have the flexibility to use the funds, and it is expected that the loan will be disbursed starting in 2025.
At the same time, EU countries have been unable to agree on extending the review period for sanctions against Russia. Hungary opposes this, which could affect the increase of the U.S. lending share. If revenues from frozen assets cease, the West will have to cover the loans from its own budget.
Hungarian Finance Minister Mihaly Varga stated that the issue of extending the review period for sanctions should be resolved after the U.S. elections scheduled for November 5.