European Commission loans €35 bln to Ukraine – von der Leyen
President of the European Commission Ursula von der Leyen. Photo: Office of the President of Ukraine
The European Commission will loan Ukraine 35 billion euros. Kyiv will receive it as part of the G7 commitments.
The head of the European Commission, Ursula von der Leyen, reported that.
"Relentless Russian attacks mean Ukraine needs continued EU support. The European Commission will provide a loan of up to 35 billion euros to Ukraine as part of the G7 pledge," she wrote.
According to von der Leyen, this is another major contribution of the EU to Ukraine's recovery.
It's worth mentioning that the Financial Times reported a few hours earlier that the EU intends to grant Ukraine a 35 billion euro loan. The loan will be financed by future earnings from the Russian Central Bank's frozen assets.
The newspaper reported that the head of the European Commission, Ursula von der Leyen, will make a statement during her visit to Kyiv. The loan is part of a $50 billion plan to help Ukraine, which emerged from negotiations with the United States and the "Big Seven" countries.
In addition, it was reported that the EU is preparing to provide new funding by the end of the year, regardless of US participation. The unilateral actions come amid concerns from Brussels that Hungary will prevent the bloc from providing the guarantees the US needs to participate in the asset freeze scheme.
According to the publication, the final figure may vary from 20 to 40 billion euros and will be set by the European Commission after consultations with member states.
This step is extremely important because, according to the International Monetary Fund and the government of Ukraine's forecasts, the country may face a financial deficit of 38 billion dollars in 2025. The current bailout expires at the end of 2024, so work on a new support mechanism will begin in the coming weeks.
Though the United States will not be involved in creating the new aid package, the intention is to use the funds from frozen Russian assets to pay back loans. These gains are projected to reach 2.5 to 3 billion euros annually and will be funneled to Ukraine through the EU budget.
This initiative demonstrates that the European Union continues to be an essential partner of Ukraine, providing it with economic support. The EU also demonstrates its readiness to act independently, without waiting for the decisions of other global players, in particular the US, to ensure stability in Ukraine.
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According to reports, Ursula von der Leyen, the head of the European Commission, visited Kyiv on September 20. This was her eighth visit to Ukraine.
The first thing I do in Kyiv is to pay tribute to the fallen defenders of Ukraine over the past 10 years.
They are real heroes who made the ultimate sacrifice for the security of our continent as a whole.
We will carry their memories in our hearts and minds. pic.twitter.com/c2GaQnVZXG
— Ursula von der Leyen (@vonderleyen) September 20, 2024
While in Kyiv, Ursula von der Leyen plans to meet with Ukraine's President Volodymyr Zelensky. According to her post on the X network, she will be engaging with leaders in Kyiv to address various matters, including winter preparedness, defense, Ukraine's progress towards EU accession, and the status of G7 loans.
