European Commission President Ursula von der Leyen
| Photo Credit: AP
The European Union on Friday (January 10, 2025) paid out to Ukraine the first three billion euros of a loan backed by the interest earned on frozen Russian assets.
The funds are part of the EU’s portion of a $50 billion loan by G7 powers to help Kyiv prop up its economy and war effort almost three years into Russia’s all-out invasion.
“Today, we deliver EUR3 billion to Ukraine, the 1st payment of the EU part of the G7 loan,” European Commission president Ursula von der Leyen wrote on X.
“Giving Ukraine the financial power to continue fighting for its freedom – and prevail.”
The money comes at a crucial juncture for Ukraine as Donald Trump gears up to take office in the U.S. having cast doubt on the future of Washington’s support.
The EU has frozen roughly $235 billion of Russian central bank funds since the Kremlin launched its invasion of Ukraine in 2022, the vast bulk of immobilised Russian assets worldwide.
About 90% of the funds in the EU are held by international deposit organisation Euroclear, based in Belgium.
The EU will in all provide some $19 billion of the G7 loan, while the U.S. has committed to $20 billion.
The United Kingdom, Canada and Japan are also contributing.
The G-7 scheme replaced an earlier EU initiative that used the proceeds of frozen assets that had already funnelled several billion dollars to Kyiv.
Ukraine is pushing for Western powers to go further and hand over the entirety of the estimated $300 billion of Russian assets frozen worldwide.
Published – January 10, 2025 11:08 pm IST