European Parliament Approves €35 Billion Loan for Ukraine

The European Parliament's Trade Committee has approved a proposal to provide Ukraine with a €35 billion loan, funded by profits from frozen Russian assets. The committee's vote saw 31 members in favor and four against, and the proposal is part of a broader G7 initiative to support Ukraine with a total of up to $50 billion. This loan is designed to help address Ukraine's urgent financial needs amid the ongoing conflict with Russia, with Ukrainian President Zelenskyy emphasizing its use for energy and defense. The full European Parliament is set to vote on the measure during its session from October 21-24, after which the EU Council will finalize the decision. This initiative reflects a shift in EU strategy to increase its financial commitment to Ukraine, especially in light of uncertainties surrounding U.S. contributions. The loan will not require repayment from Ukraine, as it will rely solely on the windfall profits generated from the frozen assets.