In a groundbreaking financial move, the European Union has approved a €35 billion ($38 billion) loan to bolster Ukraine’s defense and reconstruction efforts, utilizing frozen Russian assets to fund the massive aid package. This loan, part of the G7’s Extraordinary Revenue Acceleration (ERA) plan, represents the EU’s contribution to the larger $50 billion initiative aimed at supporting Kyiv amidst escalating tensions with Russia.
This EU-backed loan is particularly significant as it will be serviced by revenues generated from $300 billion in Russian central bank assets frozen in the West following Moscow’s invasion of Ukraine in 2022. The decision, approved overwhelmingly by the European Parliament, underscores the West’s unwavering commitment to Ukraine, despite Russia’s vocal protests and threats of retaliation.
Meanwhile, the U.K. announced an additional £2.26 billion ($2.4 billion) loan, earmarked for military spending, reinforcing its already substantial annual aid to Ukraine. As Russian forces continue deadly strikes, the international community is ramping up support, even as Moscow faces increased Ukrainian drone strikes on its own infrastructure.
As the war rages on, this massive financial lifeline signals a continued Western resolve to counter Russian aggression, despite mounting challenges.
