The agreement helps bypass Hungary's refusal to extend the renewal period for the regime holding Russian frozen assets from six to 36 months.

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EU ambassadors agreed on Wednesday (9 October) to give Ukraine up to 35 billion euros as part of the bloc’s share in a larger planned loan from the Group of Seven nations (G7) backed by frozen Russian central bank assets, a statement from the Council of the EU said.

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All of the EU’s sanctions on Moscow must be renewed every six months via a unanimous EU vote. But Hungary, with its Russia-friendly stance, has repeatedly tried to block sanctions and measures to help Ukraine, and could halt a renewal.

Hungary - which holds the six-month rotating EU presidency - does not want to discuss any possible extension for the regime holding the assets until after the US election in early November.

The European Commission proposed extending the renewal period from six to 36 months but Hungary did not table the proposal during envoy discussions, EU diplomats said.