Ukraine has received a €4 billion ($4.7 billion) loan from the European Union, funded by interest generated from frozen Russian assets. This marks the first use of immobilized Russian funds to support Ukraine’s war effort.
The Kremlin condemned the move as “theft” and warned it would pursue legal and retaliatory action against individuals and countries involved. Russia also claimed the move undermines trust in European financial institutions, the euro, and property rights.
The EU is considering a broader plan to provide Ukraine with up to €140 billion in loans, backed by around €210 billion in frozen Russian assets held in Europe, mostly in the Brussels-based Euroclear. Ukraine would repay these loans only after receiving reparations from Russia in a future peace deal.
However, the proposal faces internal EU resistance over legal and economic risks. Belgian and European Central Bank officials have voiced concerns that using sovereign assets could trigger lawsuits and damage the euro’s credibility as a global reserve currency.
Separately, the EU also pledged €2 billion to supply drones to Ukraine, bringing total EU aid since 2022 to nearly €178 billion.
Credit : CGTN
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