EU Grants €35 Billion Loan to War-Stricken Ukraine

The European Union has approved a loan of up to €35 billion to support Ukraine amid its ongoing conflict with Russia. Announced by EU Commission President Ursula von der Leyen during her Kyiv visit, this loan is part of a G7 initiative to utilize proceeds from frozen Russian assets for Ukraine's aid.

The European Union will grant a loan of up to 35 billion euros ($39 billion) to Ukraine, EU Commission President Ursula von der Leyen announced Friday, during her visit to Kyiv.

The loan is part of a broader G7 plan to use proceeds from frozen Russian assets to assist Ukraine amidst its ongoing conflict with Russia. 'Relentless Russian attacks mean Ukraine needs continued EU support,' said von der Leyen in a post on X.

Ukraine faces significant financial challenges after over two years of warfare, which have devastated its infrastructure, including the loss of about 9 gigawatts (GW) of energy facilities. The G7 countries froze approximately $300 billion of Russian assets following the invasion and committed to aiding Ukraine. Most of these funds will be directed towards military aid, while a smaller portion will support other needs of Kyiv. The first tranche is expected in July.

(With inputs from agencies.)