The European Union is set to raise a €35 billion loan to support Ukraine’s economy and military amidst ongoing Russian aggression, announced by European Commission president Ursula von der Leyen during her visit to Kyiv. This initiative is part of a larger $50 billion plan promised by G7 allies in June, using Russia’s immobilized assets as collateral. However, technical discussions between the EU and US have stalled progress, with concerns that Hungary, a Russia-friendly member state, could veto the sanctions and jeopardize the loan.
In response to the dire situation in Ukraine and fears of a humanitarian crisis, the EU is increasing its support to €35 billion, aiming to allay the White House’s concerns. The Commission also unveiled a €160 million assistance package for Ukraine, with a significant portion backed by Russia’s frozen assets, focusing on repairing power plants and boosting renewable energy capacity.
As the conflict in Ukraine intensifies and energy infrastructure is damaged, the EU’s financial assistance is crucial in helping the country resist Russian advances. The lack of consensus among G7 allies poses a challenge, but the EU is determined to provide support and ensure long-term predictability for sanctions on Russia’s assets. Details of the Commission’s plan will be made available as the situation unfolds.
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