EU members approve a $38 billion loan for Ukraine, backed by frozen Russian assets.
The European Parliament is expected to approve the loan this month, allowing it to be paid out next year.
European Union envoys have agreed to provide Ukraine with up to €35 billion ($38 billion) as part of the EU’s contribution to a larger loan package planned by the Group of Seven (G7) nations, backed by frozen Russian Central Bank assets, according to a statement from the Council of the EU.
Ukraine urgently needs the funds to stabilize its economy, equip its military, and maintain its electricity grid through the winter, following relentless attacks by Russian forces. The EU's loan, which was approved by the majority of ambassadors during a meeting in Brussels on Wednesday, is part of a broader $50 billion initiative agreed upon by the G7 in June.
The EU is the first G7 member to announce its contribution to the plan, with other countries, including the United States and the United Kingdom, yet to reveal their commitments. The European Parliament is expected to approve the loan later in October, allowing the funds to be distributed next year.
