Ukraine, EU sign agreement on up to 35 billion euro loan covered by Russian assets revenue
Ukraine's Finance Ministry and the EU signed a memorandum and an agreement to attract up to 35 billion euros ($36.7 billion) as part of the G7 loan, the ministry said on Dec. 4.
The European Commission unveiled the 35-billion-euro loan in September within the framework of the G7's broader $50 billion loan, which is covered by proceeds from frozen Russian assets.
The funding is ever more crucial for Ukraine, as Russia's war continues to take a staggering toll on the country's economy, and the future of Western support under U.S. President-elect Donald Trump remains uncertain.
The final amount of the EU's contribution will be determined "after all parties to the initiative approve the amount of loans." As the U.S. promised to contribute $20 billion, the EU's assistance might eventually amount to 18 billion euros ($18.9 billion), the ministry said.
Kyiv expects revenues from the roughly $300 billion in frozen Russian assets in G7 countries to be used to repay the loan rather than Ukraine's own resources. The country's parliament recently passed a bill to that effect, positing that it would not repay the G7 loan without reparations from Russia.
"The next important step is to raise funds from the frozen assets of the aggressor country. In recent months, we have been actively working with the European Union and other parties within the initiative to achieve concrete results in meeting Ukraine's financial needs in 2025 and beyond," Finance Minister Serhii Marchenko said in a statement.
"I am grateful for the constructive cooperation and readiness to implement fair decisions in a short time."
The Biden administration announced its $20-billion contribution in October, only a few weeks before the election victory of Trump, who has been more critical of the aid following to Ukraine.
Other G7 members, including the U.K., Canada, and Japan, are also expected to contribute to the loan.
KI Insights
