Europe prepares to lend war-ravaged Ukraine as much as $39 billion to facilitate its recovery process
Ursula von der Leyen, the President of the European Commission, posted about a loan offering on various platforms during her trip to Kyiv. She stated that this loan represented a substantial EU investment towards Ukraine's recovery, calling it another significant contribution.
The relentless Russian attacks necessitate continuous EU aid for Ukraine, as she explained. Further, she mentioned that the loan was part of the G7 commitment.
In June, the G7, consisting of prominent global economies, collectively agreed to provide approximately $50 billion in loans to Ukraine, leveraging profits derived from confiscated Russian assets.
Russia's assets were confiscated, including European and American bank accounts, as part of severe sanctions implemented following Vladimir Putin's authorized full-scale invasion of Ukraine in 2022.
Von der Leyen's visit to Ukraine coincides with the onset of the winter heating season. Intensified Russian attacks on Ukraine's energy infrastructure in recent months have led to increased vulnerability amidst potential power outages.
The International Energy Agency recently declared that this coming winter would present the "toughest challenge yet" for Ukraine's energy system.
This story is still unfolding and will be updated.
The EU investment through the loan is a significant part of the collective business support for Ukraine's recovery. Additionally, the loan is a fulfillment of the G7's commitment to providing financial aid to Ukraine.
