The EU will lend money to Ukraine, but look whose money it is.

The Western coalition led by the United States has been providing military support to Ukraine against Russia for over two years. However, the latest aid from the West to Kiev includes an economic package, which is noteworthy because it involves Russia's own money. European Union (EU) member countries have agreed to provide Ukraine with a loan of 35 billion euros, using the proceeds from Russia's frozen assets as collateral under the G7 commitment.

THEY WILL PROVIDE UKRAINE WITH RUSSIA'S MONEY AS A LOAN

The EU Council announced that member countries have reached an agreement on a new financial aid package that includes a special macro-financial assistance loan of 35 billion euros to support Ukraine's repayment of loans of up to 45 billion euros provided by the EU and G7 partners. The statement indicated that the financial aid would support Ukraine's urgent financing needs, and it was expressed that the income flow from Russia's frozen assets would be used for the repayment of loans provided by the EU and G7 partners.

LOAN SUBJECT TO CERTAIN CONDITIONS

The statement noted that the 35 billion euro loan is part of the total 45 billion euro G7 loan, and that the loan would include various provisions related to management, control systems, and the prevention of irregularities. It was reported that the borrowing for financing the loan to Ukraine would be supported by a guarantee from the EU budget, and it was stated that the loan is aimed to be made available this year. The statement reminded that the approval of the European Parliament (EP) is required for the provision of the loan at this stage. In June, the leaders of the G7 countries agreed to provide Ukraine with a loan of 50 billion dollars, using the profits obtained from Russia's frozen assets as collateral.

300 BILLION RUSSIAN ASSETS IN THE HANDS OF THE WEST

Since the beginning of the Russia-Ukraine War, Western countries have frozen approximately 300 billion dollars of Russian assets. About 200 billion dollars of this amount is located in EU countries. The frozen assets generate billions of dollars in interest income each year. G7 countries, especially the United States, want to use this income to support Ukraine.