The European Union has announced a major €35 billion loan initiative to support Ukraine as the country faces renewed Russian aggression and struggles to rebuild its economy and infrastructure. European Commission President Ursula von der Leyen made the announcement during her visit to Kyiv, emphasizing the need for continued EU support in the face of relentless Russian attacks.
This loan is part of a larger $50 billion plan promised by G7 allies in June, with the EU committing to provide its share of the funds. However, the implementation of the G7 initiative has faced challenges, particularly due to technical discussions between EU and US officials and concerns about Hungary potentially vetoing the sanctions on Russian assets.
In light of the ongoing delays and the deteriorating situation in Ukraine, the Commission has decided to increase its loan participation to €35 billion in an effort to expedite the support process. Details of the plan and how the funds will be allocated were not immediately available.
Prior to announcing the loan initiative, von der Leyen also unveiled a €160 million assistance package for Ukraine, with a portion of the funds being backed by frozen Russian assets to repair power plants and boost renewable energy capacity. The Commission’s efforts aim to provide essential financial support to Ukraine as it works to recover from the effects of the conflict and prevent a worsening humanitarian crisis.
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