EU Pledges Billions to Ukraine Amid Diplomatic Hurdles

The EU has agreed to provide Ukraine with up to 35 billion euros as part of a larger loan backed by frozen Russian assets. This decision faces opposition from Hungary, which may hinder renewal of EU sanctions on Russia. The agreement will proceed pending approval by the European Parliament.

The European Union has pledged up to 35 billion euros to Ukraine, contributing to a larger loan package backed by immobilized Russian assets, according to a statement from the Council of the EU. This commitment, part of a wider $50 billion loan from the G7 alliance, aims to bolster Ukraine's financial stability.

Frozen Russian assets, totaling approximately 210 billion euros, are largely held within the EU, particularly by Belgium's depository Euroclear. The recent agreement allows the EU to tap into budget headroom to guarantee the loan, should the asset restrictions be lifted. However, any renewal of EU sanctions on Moscow requires unanimous approval, a process complicated by Hungary's resistant stance.

Hungary, holding the EU's rotating presidency, is unwilling to discuss extending asset freeze terms until after the U.S. elections in November. Although the European Commission proposed a 36-month extension, Hungary did not present this during discussions. The European Parliament's approval is awaited, with the measure requiring only a qualified majority vote.

(With inputs from agencies.)