“The continued Russian attacks mean that Ukraine needs the continued support of the European Union.” Commission President, Ursula von der Leyentook advantage of his visit to kyiv this Friday (the eighth since the start of the Russian war of aggression) to announce a new loan of 35 billion euros to the government of Volodymyr Zelensky.
These are the costs corresponding to the European Union of the $50 billion credit announced in June by the G7 countries, supported by profits from frozen Russian assetsThe aim was to ensure that Ukraine has sufficient financing in the medium term in the event of a possible victory. Donald Trump in the November elections in the United States. However, implementing this aid proved more difficult than expected and the EU decided to go it alone.
At a joint press conference with Zelensky, von der Leyen said she was confident that the rest of the G7 members would do their part. “For us, it is important to be quick because the urgency is clear,” she stressed. kyiv’s financing needs have skyrocketed due to the destruction caused by Russian bombing. “It is true that Russia pays for reconstruction of damage it caused“, the president stressed.
[Von der Leyen visita Kiev para demostrar una vez más la “ayuda de la UE a Ucrania frente a Rusia”]
EU remains immobilized amid war sanctions about 210 billion of euros Central Bank of Russia since the beginning of the war, blocked at Euroclear, one of the largest securities depositories in the world, based in Brussels. These assets generate around 3 billion euros per year and it is this money that will be used to support credit.
To implement its credit, the Community executive has designed a mechanism that will theoretically allow it to avoid a possible Hungarian veto. However, Washington demands even more guarantees that Russian assets will remain frozen in the long term as a condition for contributing their quota, something Brussels cannot promise precisely because of the risk of a blockade by Budapest.
For now, the EU’s €35 billion loan, which is due to be ready by January, will go directly to the Ukrainian national budget with the aim of improving the country’s macro-financial stability and increasing its fiscal space. The Zelensky government will have full freedom in how to use the funds, with maximum flexibility to cover the most urgent needs. European aid will free up national resources to strengthen military capabilities and defend against Russian aggression, Von der Leyen explained.
The Commission President also announced a additional aid of 160 million euros (100 million of which also come from the profits from Russian assets frozen in Europe) specifically intended for energy sector from Ukraine. Russia is focusing its military offensive on destroying Ukraine’s civilian energy infrastructure on the threshold of winter in order to “plunge the country into darkness” and cold, Von der Leyen denounced.
Brussels has designed A winter plan for Ukraine based on three priorities. The first two are aimed at repairing the damage caused by Russian bombing and improving kyiv’s interconnection with the EU electricity grid. With these two pillars, the EU hopes to cover 25% of Ukraine’s winter needs. The third pillar is to stabilise production in the country itself and improve the protection of energy infrastructure.
During her visit to kyiv, von der Leyen said she was “deeply impressed by the speed and quality with which Ukraine is moving forward” in its reform process to be able to join the EU, although she also clarified that it was “hard work based on merit.” The process of Kyiv’s accession This will be one of the priorities of his second term at the head of the Commission, he assured.
So far, the EU, its Member States and the European financial institutions have together provided 118.3 billion euros in grants and loans to support Ukraine’s war effort and economy, help maintain basic services and provide rapid reconstruction, humanitarian aid and assistance to those fleeing war in the EU.
