EU and Ukraine agree on €18.1 billion assistance secured by frozen Russian assets – photos

The European Union and Ukraine have signed a memorandum of understanding to provide €18.1 billion in macro-financial assistance secured by frozen Russian assets.

Source: Ukraine’s Prime Minister Denys Shmyhal and Vice President of the European Commission Valdis Dombrovskis, as reported by European Pravda

Details: According to Shmyhal, the €18.1 billion in question is part of the Group of Seven's US$50 billion package, which is secured by the proceeds of frozen Russian assets.

"Such a step is not only support [for Ukraine] but also a precedent for holding Russia accountable for its crimes and starting the process of making the aggressor pay for its brutal war," he added.

Background:

• The G7 finalised the parameters of the US$50 billion loan to Ukraine, which was approved at the summit in Italy in June, and agreed on the distribution of the financial burden in late October.
• The United States has confirmed that it will provide US$20 billion of the loan, the maximum expected amount, which was in doubt until recently because the EU failed to implement a safeguard against unexpected sanctions lifting, as Washington wanted, due to Hungary's opposition.
• The UK's contribution will amount to £2.26 billion, or US$2.94 billion.
• The funds will be provided formally as a loan but will be repaid through a tax on profits received from frozen Russian assets.

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