Kyiv: The European Union (EU) pledged on Friday to lend Ukraine up to ₹35 billion ($39 billion) as part of a loan package organised by the Group of Seven major industrial nations, as it seeks to help the country rebuild its economy and its war-shattered power grid.
G7 leaders agreed in June to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia's frozen central bank assets would be used as collateral, but progress in distributing the loans has been slow. "We should make Russia pay for the destruction it caused," European Commission President Ursula von der Leyen told reporters at a news conference in Kyiv with President Vlodymyr Zelenskyy in Kyiv.
Von der Leyen said that the EU has already provided Ukraine with more than ₹118 billion euros ($132 billion) in military and economic assistance since the war began in February 2022, "but Russia's relentless attacks mean further support is necessary."
"Crucially, this loan will flow straight into your national budget. This will improve Ukraine's macro-financial stability and it will provide you with significant and much-needed fiscal space. You will decide how best to use the funds, giving you maximum flexibility to meet your needs," she said.
The loans would be underwritten by the windfall profits earned on almost $300 billion in Russian assets, which have been frozen over its full-scale invasion of Ukraine. The vast majority of that money is held in EU nations, notably Belgium.
Von der Leyen said that the EU is "confident that we can deliver this loan to Ukraine very quickly." The 27-nation bloc hopes that other G7 countries will follow its lead and start providing loans too.
Zelenskyy said that his priorities are to rebuild Ukraine's energy network, erect more bomb shelters, improve schools and buy more weapons and ammunition.
G7 leaders agreed in June to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia's frozen central bank assets would be used as collateral, but progress in distributing the loans has been slow. "We should make Russia pay for the destruction it caused," European Commission President Ursula von der Leyen told reporters at a news conference in Kyiv with President Vlodymyr Zelenskyy in Kyiv.
Von der Leyen said that the EU has already provided Ukraine with more than ₹118 billion euros ($132 billion) in military and economic assistance since the war began in February 2022, "but Russia's relentless attacks mean further support is necessary."
"Crucially, this loan will flow straight into your national budget. This will improve Ukraine's macro-financial stability and it will provide you with significant and much-needed fiscal space. You will decide how best to use the funds, giving you maximum flexibility to meet your needs," she said.
The loans would be underwritten by the windfall profits earned on almost $300 billion in Russian assets, which have been frozen over its full-scale invasion of Ukraine. The vast majority of that money is held in EU nations, notably Belgium.
Von der Leyen said that the EU is "confident that we can deliver this loan to Ukraine very quickly." The 27-nation bloc hopes that other G7 countries will follow its lead and start providing loans too.
Zelenskyy said that his priorities are to rebuild Ukraine's energy network, erect more bomb shelters, improve schools and buy more weapons and ammunition.
