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How will the EU fund the $105 billion loan to Ukraine?

Asked 12 hours ago

Answer

The EU will fund the $105 billion loan to Ukraine through joint EU borrowing backed by the bloc's budget, not by using frozen Russian assets. This decision follows concerns about legal and financial risks associated with using Russian assets, particularly raised by Belgium. The loan is structured to avoid financial impact on certain member states and aims to support Ukraine's defense and economy over two years.

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Reuters

EU agrees $105 bln Ukraine loan, but won't use frozen Russian assets

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  • EU approves 90 billion euro loan for Ukraine's defence and economy
  • Loan funded by joint EU borrowing, with conditions from some members 17s
  • Hungary criticises loan, warns of increased tensions with Moscow 28s
  • EU rejects using frozen Russian assets due to legal risks 34s
  • Frozen Russian assets to remain immobilised for Ukraine's recovery 52s

References

EU agrees $105 bln Ukraine loan, but won't use frozen Russian assets
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Reuters
12 hours ago
EU agrees $105 bln Ukraine loan, but won't use frozen Russian assets

The funding will come from joint EU borrowing backed by the bloc's budget; Hungary, Slovakia, and the Czech Republic agreed as long as it did not impact them financially.

EU agrees $105 bln Ukraine loan, but won't use frozen Russian assets
Icon
Reuters
12 hours ago
EU agrees $105 bln Ukraine loan, but won't use frozen Russian assets

The EU chose a loan over the initial plan to use frozen Russian central bank assets, a proposal that faced opposition from Belgium due to legal and financial risks if Russia retaliated.

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