The European Union will provide Ukraine with up to €35 billion ($39 billion) as part of a larger $50 billion loan package previously agreed upon by the G7 nations.
European Commission President Ursula von der Leyen disclosed the financing details on X during her trip to Kyiv on Friday.
She emphasized the need for ongoing EU support due to “relentless Russian attacks,” citing the commitment as a continuation of “the G7 pledge.”
Von der Leyen expressed confidence at a press conference in Kyiv, alongside Ukrainian President Volodymyr Zelensky, that the EU could expedite the loan delivery.
She assured President Zelensky of the autonomy to allocate the funds, potentially freeing up national resources to enhance Ukraine’s defense capabilities against Russian aggression. The funds are anticipated to reach Ukraine by the end of the year.
In June, the G7, comprising some of the world’s major economies, agreed to collectively loan Ukraine about $50 billion, securing the loans against future profits from Russian assets frozen within the EU and other locations.
In response to Russian President Vladimir Putin’s invasion of Ukraine in 2022, Western countries implemented extensive sanctions, including freezing Russian assets in banks across Europe, the United States, and other nations.
A significant portion of these assets, around €210 billion ($234 billion) or two-thirds of Russia’s total frozen assets, are held within the EU, with a smaller fraction, about $3 billion, located in U.S. banks.
The proposed EU loan awaits the green light from the European Parliament and must be passed with a qualified majority among the member states.
Given the urgent nature of the request, the European Commission announced its intent to expedite the approval process, signaling its commitment to a swift adoption.
The announcement underscores a firm stance that the responsibility for Ukraine’s rebuilding efforts rests with those implicated in its hardships.
While the funding strategy avoids the outright seizure of Russian assets, the EU remains cautious, concerned about the potential repercussions for international asset deposits within the bloc.
Von der Leyen’s trip to Kyiv coincides with the onset of the winter heating season, a critical time as Russian attacks increasingly target Ukraine’s energy infrastructure, threatening widespread power outages.
The International Energy Agency recently warned that the upcoming winter poses the most significant challenge yet for Ukraine’s energy resilience.
