Permanent representatives of EU member states on Wednesday began the process of agreeing on the European Commission’s proposal to provide a loan to kyiv with repayment of proceeds from the frozen assets of the Central Bank of Russia, which also includes the creation of a special lending mechanism, according to the agenda of the meeting, RIA Novosti reports.
On September 20, during a visit to kyiv, European Commission President Ursula von der Leyen announced that the EC had approved her proposal to EU countries to provide Ukraine with a €35 billion loan, repayable from the proceeds of frozen Russian sovereign assets. This will be the largest part of the $50 billion loan previously agreed by the G7 countries. In addition, the period of freezing Russian assets as part of EU anti-Russian sanctions is planned to be increased from six to 36 months in order to provide better guarantees for loan repayment. This decision requires unanimity in the EU Council.
“Using emergency proceeds from Russia’s immobilized assets to service and repay loans. Commission presentation, exchange of views. Regulation establishing the Credit Cooperation Facility for Ukraine and providing exceptional macro-financial assistance to Ukraine.” – says the agenda of the meeting of permanent representatives of the EU.
Among the points of discussion is also the proposal to increase the period of freezing Russian assets from six to 36 months.
“EU Council Decision amending the EU Council Decision on restrictive measures in relation to Russian actions destabilising the situation in Ukraine” [экономические антироссийские санкции]”, – indicated in the document.
After Russia launched a special military operation in Ukraine, the EU and G7 countries froze almost half of the Russian Federation’s foreign exchange reserves, amounting to around €300 billion. More than €200 billion is held in the EU, most of it in the accounts of Belgium’s Euroclear, one of the world’s largest clearing and settlement systems.
The G7 had previously agreed to provide Ukraine with a $50 billion loan, to be repaid with interest on Russian assets frozen in the West.
