Sybiha, Borrell discuss progress on providing EUR 35B loan to Ukraine

Ukraine’s Foreign Minister Andrii Sybiha, during a phone conversation with the EU High Representative Josep Borrell, discussed the progress on providing 35 billion euros in loans to Ukraine using frozen Russian assets.

He shared this information on Saturday via social media platform X, as reported by Ukrinform.

“We discussed the tangible progress in providing EUR 35 billion to Ukraine through the use of frozen Russian assets and other snext joint steps,” Sybiha wrote.

The Ukrainian minister also mentioned that he had been invited to the EU Foreign Affairs Council meeting on October 14.

As reported by Ukrinform, the EU Council approved on Wednesday the provision of macro-financial assistance to Ukraine amounting to EUR 35 billion, as well as a new mechanism that will help Ukraine service loans up to EUR 45 billion provided by the EU and G7 partners.

According to the European Council’s decision, Russian assets must remain frozen until Russia ceases its war against Ukraine and compensates for the damages caused by the war. This means that the assets will remain frozen until compensation from Russia is obtained to service the loans.

Additionally, it was reported that at the G7 summit in Italy on June 14, 2024, the leaders of the G7 countries agreed to direct approximately USD 50 billion to Ukraine. The funds will be serviced and repaid using future revenues from frozen sovereign Russian assets located in the European Union and other jurisdictions.

Frozen assets of the Central Bank of Russia in the EU amount to EUR 210 billion and constitute the majority of such frozen assets worldwide. Depending on the level of interest rates, revenues from these assets are currently estimated to be EUR 2.5-3 billion per year.