The European Union does not plan to limit Ukraine’s use of funds received from frozen Russian assets to cover its budgetary needs. This concerns a loan from the EU in the amount of 35 billion euros. This was announced by the Vice President of the European Commission, Valdis Dombrovskis, who quotes Baltic News Network.
He noted that Russia’s frozen assets in European countries will be used as collateral for this loan. Dombrovskis also announced plans to change the mechanism for continuing the freezing of Russian assets, which currently occurs every six months. The European Commission is proposing to extend this period to three years if EU member states can reach a consensus, although Hungary may oppose the initiative.
He emphasized that by the decision of the “Big Seven” countries, Russia’s assets should remain frozen until Moscow pays reparations to Ukraine.
Answering a question about the use of credit funds, Dombrovskis noted that Ukraine will be able to direct these 35 billion euros to cover general budgetary needs, and additional restrictions will not be imposed on these funds. He also added that the total amount of frozen Russian assets in Europe exceeds 200 billion euros.
We will remind that on September 20, the President of the European Commission, Ursula von der Leyen, during her visit to Kyiv, announced the allocation of this loan for 35 billion euros as part of the commitments of the G7 countries. She noted that these funds will contribute to the improvement of Ukraine’s macro-financial stability.
This loan is secured by future revenues from the frozen assets of the Russian central bank, which will provide predictable financial support to Ukraine in a difficult time for it.
