EU Backs Ukraine's Financial Aid Amid Russian Asset Impasse

The EU has agreed to provide Ukraine with a loan of up to 35 billion euros, as part of the G7's larger plan to offer $50 billion. This agreement utilizes frozen Russian assets, though Hungary's opposition against extending sanctions creates potential challenges.

European Union envoys have reached an agreement to extend financial support to Ukraine, amounting to up to 35 billion euros. This commitment forms part of the G7's wider loan package of $50 billion, intended to aid Ukraine amid ongoing tensions with Russia.

The funds are secured by profits generated from Russian central bank assets, which remain frozen by the West. However, Hungary, which currently presides over the EU, has opposed extending the renewal period for the sanctions trap, threatening potential obstructions in the sanction extension process.

The proposal not only requires EU consensus but also needs approval from the European Parliament. The outcome of this vote remains crucial as it could determine the longer-term strategy for supporting Ukraine while maintaining the freeze on Russian assets.

(With inputs from agencies.)