The European Union will loan Ukraine up to 35 billion euros backed by the "extraordinary revenues" that it receives from frozen Russian assets.
What's new: European Commission President Ursula von der Leyen, on her eighth visit since the all-out war began, arrived in Ukraine's capital Kyiv on Friday with a message of continued support for the conflict-torn country as the prospect of another tough winter approaches.
E.U. member nations' financial institutions have frozen Russian assets, worth about 210 billion euros, since Russia's full-scale invasion of Ukraine in Feb. 2022, as part of the sanctions that the E.U. imposed on Russia.
What's next: Von der Leyen announced the loan, worth about US$39 billion, will be supported by windfall profits of between 2.5 billion euros and 3 billion euros a year that the E.U. receives largely from interest paid on the Central Bank of Russia's frozen assets.
"This visit comes at a crucial time. Winter is approaching, and Russia keeps targeting your civilian energy infrastruture in a blatant and vicious way to try and plunge your country in the dark," she told a joint press briefing with Ukraine's President Volodymyr Zelenskyy. "The European Union is here to help you in this challenge, to keep the lights on, to keep your people warm as winter's just around the corner, and to keep your economy going as you fight for your survival."
What's important: The loan plan would fill Ukraine's anticipated budget shortfall and help pay for energy, air defense systems and bomb shelters, but it still must gain approval before the end of the year by a majority of the 27-nation bloc and the European Parliament.
Who's involved: The E.U. plan "follows up on the commitments" made by the Group of Seven wealthy democracies to use Russian assets to raise funds for Ukraine. G-7 nations pledged "unwavering support for Ukraine," the E.U. noted They had agreed to provide Ukraine with a US$50 billion loan package, based on interest and profits from some US$300 billion frozen Russian assets, but the plan has stalled over legal questions.
What's happening now: "The priorities are clear – defending Ukraine," Zelenskyy told the press briefing. "Our positions, our warriors, and the fair pressure on Russia for the war. Maintaining the resilience of both Ukraine and all of Europe. Especially relevant now, as winter approaches, is energy – protecting and restoring our infrastructure."
