EU approves 90 billion euro loan and tougher sanctions on Russia

The European Union has approved a new financial aid package for Ukraine totaling 90 billion euros, along with an expanded sanctions regime targeting Russia. European Commission President Ursula von der Leyen confirmed the decisions after a meeting of EU leaders in Brussels. The loan will support Ukraine’s budget and reconstruction efforts over the next three years, while the sanctions aim to tighten pressure on Moscow for its ongoing war in Ukraine. The sanctions package includes restrictions on exports of sensitive technologies to Russia, a ban on new investments in the Russian energy sector, and tighter controls on Russian oil and gas revenues. These measures follow previous rounds of penalties that have already reduced Russia’s access to Western financial systems and technology. The EU has also pledged to enforce sanctions more strictly to prevent circumvention through third countries. Ukrainian President Volodymyr Zelensky welcomed the decisions, calling them a critical step in ensuring long-term support for Ukraine. He noted that the loan will help stabilize Ukraine’s economy amid ongoing Russian attacks on infrastructure and energy facilities. The EU has already disbursed over 50 billion euros in aid to Ukraine since the start of the full-scale invasion in 2022. The new sanctions were adopted unanimously by EU member states, including Hungary, which had previously resisted some measures. Analysts say the expanded restrictions reflect growing frustration in Europe over Russia’s ability to bypass existing sanctions through trade with countries like China, India, and Turkey. The financial package still requires final approval from the European Parliament and national parliaments in some member states. If ratified, the first tranche of the loan could be disbursed by the end of this year. Source: tu.no