European Commission chief pledges support during visit to Kyiv, with funds to be used to bolster Ukraine’s economy
Kyiv, Ukraine (DT/AP) — The European Union pledged on Friday to lend Ukraine up to 35 billion euros ($39 billion) as part of a loan package organized by the Group of Seven major industrial nations, as it seeks to help the country rebuild its economy and its war-shattered power grid.
G7 leaders agreed in June to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia’s frozen central bank assets would be used as collateral, but progress in distributing the loans has been slow.
“We should make Russia pay for the destruction it caused,” European Commission President Ursula von der Leyen told reporters at a news conference in Kyiv with President Vlodymyr Zelenskyy in Kyiv.
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Von der Leyen said that the EU has already provided Ukraine with more than 118 billion euros ($132 billion) in military and economic assistance since the war began in February 2022, “but Russia’s relentless attacks mean further support is necessary.”
In June, the G7 leaders—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—agreed to provide a $50 billion loan to Ukraine, backed by future profits from frozen Russian assets. The EU also participates in all G7 discussions.
“Relentless Russian attacks mean Ukraine needs continued EU support,” von der Leyen posted on X, announcing the loan and calling it “another major EU contribution to Ukraine’s recovery.”
During her eighth visit to Kyiv, she also stated that Europe would support Ukraine on various fronts, including winter preparedness and defense.
Ukraine’s winter runs from late October through March, with January and February the toughest months. The Europeans hope to help supply around 25% of the 17 gigawatts of power that the country is likely to need this winter.
One aim of the EU assistance is to provide an incentive for people to stay in Ukraine. About 4 million people have fled since the war began on Feb. 24, 2022, often to Poland and other neighboring countries.
The EU is providing assistance, such as short-term help to find a place to stay, jobs or education. But recently the number of people leaving has climbed. The European Commission, the EU’s powerful executive branch, estimates that 10,000 more people are applying for help each week.
Should the influx continue it could undermine European support for Ukraine.
On Thursday, the commission announced that it would provide an extra 160 million euros ($180 million) to help fortify Ukraine’s energy network. Of that, 100 million euros ($112 million) come from the windfall profits earned from the frozen Russian assets.
Denmark is also leading the charge on using this money to place orders for weapons and military equipment directly with Ukraine’s defense industry.