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European Parliament votes in favour of €35 billion loan for Ukraine

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The European Parliament voted in favour of €35 billion ($38 billion) in loans for Ukraine secured by windfall profits from frozen Russian assets on Tuesday.

The EU legislative chamber backed the financial aid with 518 votes in favour, 56 against and 61 abstentions.

European Commission President Ursula von der Leyen announced the package on a visit to Kiev in September, saying at the time that “Russia’s relentless attacks mean further support is necessary.”

Around €210 billion in Russian state assets held by financial institutions in the bloc are currently frozen under EU sanctions, according to commission figures.

These assets are generating around €2.5 to €3 billion in interest annually, the commission said. The EU sanctions freezing these Russian assets are renewed every six months.

According to EU rules on sanctions, the freezing of funds, or changes to the punitive measures that froze the Russian assets, must be decided unanimously.

The €35-billion package is the European Union’s share of a $50 billion loan for Ukraine announced by the seven major Western industrialized nations (G7) in June.

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