Von der Leyen in Kyiv announces a large package of support for Ukraine from the European Commission

Ukraine will receive a €35 billion loan from the European Commission to meet its needs. This was announced by European Commission President Ursula von der Leyen during her visit to Kyiv on 20 September.

«Today, the European Commission has approved proposals that will allow the European Union to borrow €35 billion from the G7 commitment. This is a huge step forward. We are confident that we will provide this loan to Ukraine very quickly», — von der Leyen said at a joint press conference with President Volodymyr Zelenskyy, as reported by UNIAN news agency.

The European Commission President clarified that the loan is supported by proceeds from frozen Russian assets. The funds will go directly to Ukraine’s national budget.

«This will enhance Ukraine’s macro-financial stability», — von der Leyen noted in Kyiv.

She also mentioned that Ukraine would decide how best to allocate the funds.

President Volodymyr Zelenskyy, in turn, stated that the money would primarily be used for energy, defense, and constructing shelters in educational institutions. Additionally, part of the funds will be spent on purchasing domestically produced drones and missiles, as well as acquiring air defense systems from abroad.

This loan is part of the G7 countries’ commitments, constituting the majority of the previously agreed upon $50 billion loan.

European Commission’s Support for the Energy System of Ukraine

Ahead of her visit to Kyiv, Ursula von der Leyen announced that the European Union would allocate an additional €160 million. These money will support Ukraine’s energy system, which has been affected by Russian strikes.

«Of this, €60 million will be allocated as humanitarian aid for shelters and items like heaters, and €100 million from frozen Russian assets will be used for repairs and renewable energy projects», — she said.

In addition to the promised €160 million for repairing Ukraine’s energy infrastructure, Ukraine will also receive equipment from a thermal power plant in Lithuania. It is currently being dismantled.

«We aim to restore 2.5 GW of capacity, which represents 15% of Ukraine’s energy needs», — von der Leyen stated before her visit to Kyiv.