EU and Ukraine sign memorandum on part of G7 loan from Russian assets

The European Union has signed a memorandum of understanding with Ukraine for the first part of the €18.1bn loan with repayment from the proceeds of frozen Russian assets. This was announced by Ukrainian Prime Minister Denis Shmygal on November 28.

"The signed Memorandum of Understanding is a step towards providing €18.1 billion. This is part of the G7 initiative for $50 billion backed by profits from frozen Russian assets," the Ukrainian prime minister said in a post on the social network X (former Twitter).

Tracking sanctions: Russia's EAEU partners may fall under EU restrictions

What new pressure measures Brussels is preparing for Moscow and its allies

Earlier, on November 26, French Armed Forces Minister Sebastien Lecornu said that France intended to supply Ukraine with anti-aircraft missiles and other weapons through the proceeds from frozen Russian assets.

Before that, on November 7, Ukrainian President Volodymyr Zelenskyy (his term expired on May 20) called the Russian assets frozen by the West as Ukrainian money. He also urged to find a mechanism to transfer them to Kiev as soon as possible.

On October 23, the EU Council approved a €35bn loan to Ukraine with repayment from Russia's frozen assets. It was specified that it is the EU's contribution to the G7 loan of up to €45bn. The loan will have a maximum repayment period of 45 years.

Western countries have increased military and financial support for Kiev against the background of the special operation of the Russian Federation to protect Donbass, the start of which was announced by Russian President Vladimir Putin on February 24, 2022, after the aggravation of the situation in the region due to shelling by the Ukrainian military. The EU soon approved the decision to freeze the assets of the Russian Central Bank.