EU approved a loan to Ukraine for 35 billion euros using frozen Russian assets.

The European Union countries approved a plan to provide Ukraine with a loan of 35 billion euros to support its economy, which suffered from the war. The loan will be secured by frozen assets of the Central Bank of Russia.

According to Euronews, this plan is part of the initiative of the G7 countries, which provides for the provision of 45 billion euros (50 billion dollars) to Kyiv as soon as possible. "Ukraine is trying to contain a new Russian aggression that has seriously damaged its energy system and depleted its military reserves," the article notes.

EU representatives reported that 35 billion euros will be allocated "indefinitely" and "not targeted", which gives the Ukrainian government maximum flexibility in spending these funds. Brussels hopes to start disbursing the money at the beginning of next year.

The loan agreement was reached on Wednesday evening, a day after Hungary announced it would block a key change in EU sanctions until the next US president is elected on November 5.

The proposed amendment provides that member countries will update restrictions on frozen assets, which are estimated to total 210 billion euros, every 36 months, instead of the current six months.

According to the G7 plan, the income from the assets will be used to gradually pay off the amount that each ally lent to Ukraine. If this income becomes unavailable, the West is obliged to repay this debt.

Initially, the EU and the US were to contribute equally in the amount of 18 billion euros (20 billion dollars) each, but the US's clumsy stance led to an increase in the EU share to 35 billion euros.

The agreement, which still needs to be ratified by the European Parliament, paves the way for the EU to raise its multi-billion share by the end of the year and start payments from the beginning of 2025.