The European Union intend to lend Ukraine 35 billion Euros from the Russian frozen assets
The European Commission President Ursula von der Leyen has announced that the European Union intends to lend Ukraine 35 billion Euro from the frozen Russian assets to support the Ukrainian economy and military.
Von der Leyen unveiled the loan during her visit to Kyiv on Friday, stressing that “Ukraine needs continued support from the EU in the face of ongoing Russian attacks”.
She called the loan “another major contribution to supporting Ukraine’s recovery”.
The loan is part of a $50 billion international plan pledged by G7 allies at their summit in June.
The plan is based on using frozen Russian assets as collateral for loans to Ukraine, as the original idea was for the European Union and the United States to contribute $20 billion each, with Canada, the United Kingdom and Japan covering the rest.
However, the implementation of the plan faced technical obstacles, as talks between EU and US officials stalled.
The United States fears that Hungary, an EU member state considered close to Russia, will use its Veto to unfreeze Russian assets, which could lead to the collapse of the plan and leave Western countries responsible for financing the repayment.
Last week, the European Commission presented member states with three options to ensure that sanctions on Russian assets remain in place for periods ranging from 36 months to five years.
However, Hungary has refused to move forward with the plan until after the US presidential election in November.
Given the worsening Ukrainian crisis and fears of a deterioration in the humanitarian situation during the coming winter, the European Commission has decided to increase its support to Ukraine by 35 billion Euros, in an attempt to reassure the United States about the required guarantees.
In addition to the loan, von der Leyen announced an additional aid package for Ukraine worth 160 million Euros, of which 100 million Euros is earmarked for repairing damaged power plants and increasing reliance on renewable energy.
The continued European support to Ukraine is coming after the recent significant damage that Ukraine’s energy infrastructure suffered as a result of escalating Russian attacks, in addition to significant Russian advances in several fronts in the eastern regions.
