The European Union has pledged to raise a €35 billion loan to support Ukraine’s economy and military as the country faces a renewed Russian offensive. European Commission President Ursula von der Leyen announced the initiative during her visit to Kyiv, emphasizing the need for continued EU support in the face of relentless Russian attacks.
The loan is part of a larger $50 billion plan promised by G7 allies in June, with the EU taking on a significant portion of the commitment. However, technical talks between EU and US officials have stalled progress on the initiative, with concerns that Hungary, a Russia-friendly member state, could veto the renewal of sanctions on Russia’s assets, jeopardizing the entire loan.
In response to the escalating crisis in Ukraine, the EU is increasing its participation to €35 billion to address the urgent needs of the country. Details of the Commission’s plan were not immediately available, but von der Leyen also announced a €160 million assistance package for Ukraine, with a portion of the funds backed by Russia’s frozen assets to repair power plants and boost renewables.
As the situation in Ukraine grows more dire, there are fears of a humanitarian crisis in the winter, prompting the Commission to accelerate its support efforts. Despite challenges in reaching consensus and securing funding approval from the US Congress, the EU remains committed to supporting Ukraine in its recovery and defense against Russian aggression.
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