EU plans on robbing Russian money for Ukrainian loan
Date
10/26/2024 9:13:57 AM
(MENAFN) The European Parliament has officially sanctioned a €35 billion ($38 billion) loan to Ukraine, with repayment set to come from revenues generated by frozen Russian assets. This significant financial package was confirmed in an official statement released on Tuesday.
Since the onset of the Ukraine conflict in February 2022, the EU has frozen approximately €210 billion ($227 billion) in assets belonging to the Russian Central Bank. Russian authorities have condemned this action, labeling it as "theft." The new loan aligns with the EU's commitment to a broader $50 billion aid package for Ukraine, as agreed upon by G7 nations back in June. The vote in the European Parliament showcased considerable support, with 518 members voting in favor, 56 against, and 61 abstaining.
The allocated funds are expected to be distributed over the course of the upcoming year. The revenues generated from the frozen Russian Central Bank assets will be utilized to service the EU loan, as well as loans from other G7 partners. Additionally, the Ukrainian government will have the flexibility to allocate these funds according to its own priorities.
Earlier in the month, EU member states endorsed the proposal, paving the way for the European Council to adopt it as a formal regulation. Following publication in the Official Journal of the EU, the new financial framework will come into effect.
As of mid-July, the immobilized Russian assets had accrued around €3.4 billion ($3.7 billion) in interest, according to Euroclear, the Brussels-based central securities depository responsible for most of Russia's funds. In July, the European Commission also approved a transfer of €1.5 billion ($1.6 billion) from these earnings to bolster Ukraine’s military capabilities.
In parallel, the United States is reportedly preparing to contribute up to $20 billion to the G7 financial aid package, contingent upon the agreement that these funds will also be repaid using proceeds from the frozen Russian assets.
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