The European Union has pledged to provide Ukraine with a substantial loan of up to 35 billion euros ($39 billion) to support the country’s ongoing efforts to resist the devastating impact of Russia’s invasion.
This announcement was made by EU Commission President Ursula von der Leyen during her visit to Kyiv, emphasising the EU’s unwavering commitment to Ukraine’s recovery.
“Relentless Russian attacks mean Ukraine needs continued EU support,” von der Leyen stated, highlighting the urgent need for financial assistance .
The loan is part of a broader plan among G7 nations to utilize proceeds from Russian assets frozen due to sanctions imposed following Moscow’s invasion of Ukraine in 2022.
The conflict has resulted in significant financial strain on Ukraine, with over two years of intensive warfare devastating its infrastructure.
Russia’s attacks has knocked out approximately 9 gigawatts (GW) of Ukraine’s energy infrastructure, exacerbating the country’s economic challenges.
In response, the G7 countries froze around $300 billion worth of Russian financial assets, aiming to redirect these funds to support Ukraine.
After months of deliberation, the EU reached an agreement in May to allocate 90% of the proceeds towards military aid for Ukraine, with the remaining 10% dedicated to supporting Kyiv in other areas.
Notably, the frozen assets are generating exceptional interest, yielding windfall profits. Ukraine is expected to receive the first tranche of the loan in July, as confirmed by EU diplomats.
This loan is a vital component of the EU’s comprehensive support package for Ukraine, demonstrating the bloc’s steadfast resolve to help the country recover and rebuild.
As von der Leyen emphasised, “The European Union is rallying financial firepower to help Ukraine resist and recover.”
Boluwatife Enome
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