The EU Parliament endorses a €35 billion financial aid package for Kiev.
EU President Roberta Metsola stated that Russia should take account of a "stong statement," referring to the financial repercussions they'll face due to the destruction in Ukraine. Ukraine doesn't need to repay the loan, but instead, the interest and repayment costs will be covered using the income generated from the frozen Russian assets under EU sanctions. Approximately 210 billion euros from the Russian Central Bank is currently frozen under EU sanctions, with an estimated annual profit of up to three billion euros.
The EU members have formally approved the loan, with the regulation anticipated to be enforced by the end of October.
Through this action, the EU is providing immediate financial support for a $50 billion (around €45 billion) assistance plan that the G7 countries agreed upon for Ukraine at a summit in Italy in June. The EU is hoping for concrete promises from the USA and other allies at a G7 finance ministers' meeting in Washington on Friday, as revealed by EU Commissioner Didier Reynders during the plenary debate.
Bernd Lange, the Chairman of the EU Parliament's Trade Committee (SPD), expressed optimism that "the US will stick to their pledges." Previously, the USA had signaled a $20 billion commitment, with the EU ready to contribute an additional $20 billion, while Britain, Japan, and Canada would cover the remaining $10 billion.
However, the US pledge had been delayed due to secret talks focusing on the payment modalities. Due to liability concerns, Washington demanded access to the Russian asset interest gains for a three-year period instead of the six-month period offered under EU sanctions. Regrettably, Hungary, which has close ties with Russia, vetoed the extension with its power.
Commissioner Reynders indicated that if the US contributes the promised $20 billion to the G7 plan, the EU could lessen its loan accordingly. The US announcement comes just before the presidential elections on November 5. Republican Donald Trump has publicly hinted that he might not continue supporting Ukraine if he wins the election.
The Ukrainian War has significantly impacted Russia, leading to the freezing of approximately 210 billion euros from their Central Bank under EU sanctions. EU President Roberta Metsola's "strong statement" references the financial repercussions Russia will face due to the destruction in Ukraine.
