EU finalizes up to €35 billion loan package for Ukraine

The Council of the European Union confirmed the up to €35 billion ($37.7 billion) loan package for Ukraine through a written procedure, as announced by the Hungarian presidency of the EU Council.

The decision will come into effect the day after its publication in the Official Journal of the EU.

The ERA mechanism was agreed upon by G7 leaders during a summit in Italy in June 2024. The loan will be backed by proceeds from frozen Russian assets and will be interest-free for Ukraine.

The funds are to be disbursed until the end of 2025.

The European Union is set to provide the bulk of the package—up to €35 billion (though the amount may be lower if the United States agrees to contribute $20 billion). Canada has pledged 5 billion Canadian dollars ($3.6 billion), and the United Kingdom has committed £2.26 billion ($3 billion).