EU will not restrict Ukraine's use of funds from frozen Russian assets
The Vice President of the European Commission, Valdis Dombrovskis (Photo: Getty Images)
The European Union does not plan to restrict Ukraine in its use of funds from frozen Russian assets. This concerns an EU loan of 35 billion euros, according to the Vice President of the European Commission, Valdis Dombrovskis.
He noted that Russian assets frozen in European countries will, to some extent, serve as collateral for the European Commission's planned loan of 35 billion euros.
It is also planned to change the procedure for deciding to extend the freezing of Russian assets every six months. According to Dombrovskis, this could be done much less frequently—once every three years, provided that EU countries can reach an agreement on this. However, Hungary is expected to oppose the move.
Dombrovskis emphasized that according to the G7's decision, Russian assets must remain frozen until Russia pays reparations to Ukraine.
When asked how Ukraine would be allowed to spend the 35 billion euro loan, the Vice President of the European Commission responded that Ukraine could cover its general budgetary needs with this money. He does not foresee any specific restrictions on the use of the loan.
Dombrovskis also mentioned that the total amount of frozen Russian assets in Europe could exceed 200 billion euros.
Loan for Ukraine
On September 20, European Commission President Ursula von der Leyen, during her visit to Kyiv, announced a 35 billion euro loan as part of the G7 commitments.
According to von der Leyen, these funds will help improve Ukraine's macro-financial stability.
The loan will be backed by future revenue from Russia's central bank's frozen assets, ensuring more predictable financial support for Ukraine.
