The European Union has announced a significant financial boost for Ukraine, with a new loan of up to €35 billion (about $39.06 billion) aimed at helping the country withstand the ongoing war with Russia.
Ursula von der Leyen, President of the European Commission, announced during her visit to Kyiv on Friday.
This loan is part of a broader initiative involving the Group of Seven (G7) industrialized nations to utilize proceeds from frozen Russian assets as part of their sanctions against Russia following the invasion of Ukraine. Von der Leyen emphasized the importance of this financial support in strengthening Ukraine’s resilience amid the ongoing conflict.
In addition to the loan, von der Leyen mentioned that €160 million (around $179 million) from the frozen Russian assets will be allocated for urgent humanitarian needs in Ukraine this winter.
The EU also plans to dismantle a fuel power station in Lithuania to be rebuilt in Ukraine, addressing the significant damage that 80% of thermal power plants have suffered.
Von der Leyen highlighted the goal of restoring 2.6 gigawatts of energy production capacity, which represents 15% of Ukraine’s total energy needs.
This initiative underscores the EU’s commitment to supporting Ukraine’s recovery and reconstruction in the face of the ongoing challenges posed by the conflict.
In July, the EU had already secured €1.5 billion ($1.6 billion) to assist Ukraine, marking the first tranche of funding derived from profits on frozen Russian assets. Member states of the EU had previously agreed in May 2024 to utilize these assets to help arm Ukraine and finance its post-war reconstruction efforts.
