EU Approves $38 Billion Loan to Ukraine from Frozen Russian Assets

The European Union has approved a plan to utilize frozen Russian central bank assets for lending up to 35 billion euros to Ukraine, a move supported by the European Parliament. This is part of a larger G7 initiative to provide $50 billion in loans to aid Ukraine amidst the ongoing conflict.

The European Union lawmakers have given their approval to a strategic plan aimed at supporting Ukraine by using frozen Russian central bank assets. These assets will be utilized to loan up to 35 billion euros ($38 billion) to Ukraine, a proposal that gained significant backing with 518 votes in favor.

This decision marks the final legislative endorsement from the EU, following a prior agreement by EU governments earlier in October. The initiative forms part of the G7's broader strategy to provide Ukraine with a $50 billion loan package, financed by the income derived from the currently immobilized Russian assets.

Some 210 billion euros worth of assets remain frozen within the European Union's 27-member states. Notably, a large portion is managed by Belgium's Euroclear. Separately, the UK has pledged an additional 2.26 billion pounds ($2.9 billion) in loans to Ukraine.

(With inputs from agencies.)