Germany pledges €50 billion loan to Ukraine, eyes frozen Russian assets for repayment

German Chancellor Olaf Scholz has announced a new loan of €50 billion to Ukraine. It is assumed that these funds will be received at the expense of interest from Russian assets frozen in European countries.

Western officials believe that if a peace agreement is reached between Ukraine and Russia, these assets can be included in reparations for Ukraine and used to repay the loan, Caliber.Az reports per his tweet.

Deutschland ist und bleibt der stärkste Unterstützer der Ukraine in Europa. Und wir setzen die Unterstützung fort: mit einem 50-Milliarden-Euro-Kredit, den wir mit den G7 auf den Weg bringen.

Damit kann die Ukraine in großem Umfang Waffen beschaffen. Darauf kann sie bauen.

— Bundeskanzler Olaf Scholz (@Bundeskanzler) August 19, 2024

“We continue our support: with the €50 billion loan that we are organising together with the G7,” Scholz said.

He also emphasised that Germany remains the strongest supporter of Ukraine in Europe. According to him, this loan will allow Ukraine to buy more weapons.