On 20 September, the European Union announced a significant loan package of up to 35 billion euros ($39 billion) for Ukraine. This is part of a larger $50 billion aid package organized by the Group of Seven (G7) major industrial nations. The loan is intended to help rebuild Ukraine’s economy and war-damaged power grid.
Since Russia’s full-scale invasion began in February 2022, the EU has provided Ukraine with over 118 billion euros ($132 billion) in military and economic assistance. According to AP, European Commission President Ursula von der Leyen stated at a news conference in Kyiv alongside Ukrainian President Volodymyr Zelenskyy, “We should make Russia pay for the destruction it caused.” She emphasized that the loan would go directly into Ukraine’s national budget, providing “significant and much-needed fiscal space” for the country to decide how to use the funds.
The loan package is expected to be funded by windfall profits earned from nearly $300 billion in Russian assets that were frozen due to the invasion of Ukraine. Von der Leyen expressed confidence in the EU’s ability to quickly deliver the loan to Ukraine and hoped that other G7 countries would also contribute.
President Zelenskyy outlined his priorities for the funds, including rebuilding Ukraine’s energy network, constructing more bomb shelters, improving schools, and purchasing weapons and ammunition. Von der Leyen stressed the urgent need for support, noting that about half of Ukraine’s energy infrastructure has been destroyed during the war. The EU aims to help Ukraine decentralize its power grid and become less reliant on large power stations that are easier targets for Russian forces.
In addition to the loan, the European Commission President announced an extra 160 million euros ($180 million) to help fortify Ukraine’s energy network, with 100 million euros ($112 million) coming from the windfall profits earned on frozen Russian assets.
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