EU chief announces €35 billion loan plan for Ukraine

EU chief Ursula von der Leyen announced plans on Friday for Brussels to lend Ukraine 35 billion euros ($39.1 billion) from the proceeds of frozen Russian assets and promised to help Ukraine “keep warm” ahead of a third winter of war with Russia.

Von der Leyen was in Kiev after a summer of intense fighting and amid growing concerns about how Ukraine’s war-ravaged power grid will cope this winter.

The International Energy Agency said Kiev would face its “severest test” this winter, with Moscow likely to launch another bombing campaign against the country’s already-damaged infrastructure.

Von der Leyen’s trip came ahead of Ukrainian President Volodymyr Zelensky’s visit to the United States, where he was to outline plans to end the two-and-a-half-year war.

“The European Union is here to help you in this challenge, to keep your electricity, your people warm and your economy running as you fight to survive,” von der Leyen said.

“We are now confident that we can very quickly provide Ukraine with this loan, a loan that is secured by windfall profits from immobilized Russian assets,” she added, speaking alongside Zelensky. “Dangerous situation”

Ukraine desperately needs funds to support its economy and keep its electricity grid functioning.

The EU proposal – which must be approved by member states – is part of a larger plan agreed by the G7 in June to use proceeds from frozen Russian assets to lend Kiev $50 billion.

The EU has frozen some $235 billion in Russian central bank funds since the Kremlin launched its invasion of Ukraine in 2022, accounting for the vast majority of immobilized Russian assets worldwide.

Von der Leyen also said Brussels would help “repair the damage caused by Russian attacks” to Ukraine’s energy infrastructure.

“Our goal is to restore 2.5 gigawatts of power this winter, which is about 15 percent of the country’s electricity needs this winter,” she said.

Zelensky praised these measures in his evening speech.

“In everything from defense to social issues, we have really good results. Ursula, thank you,” he said.

Norway later announced it would increase civilian aid to Ukraine by $475 million and extend the aid package by three years to 2030.

“We live in a very dangerous situation in Europe,” said Prime Minister Jonas Gahr Store.

Zelensky’s “Victory Plan”

Zelensky is expected to present his so-called “victory plan” to end the fighting to U.S. President Joe Biden during a visit next week.

“I really hope he will support this plan,” Zelensky said.

“The plan is designed for decisions that will have to be made between October and December… We would very much like that. Then we believe the plan will work,” he added.

He is scheduled to meet with Biden and Democratic presidential candidate Kamala Harris. Kyiv says he will also meet with her Republican election rival Donald Trump.

Zelensky said he intends to hold another international peace summit in November, where he will present his vision of ending the war. Russia will also be invited.

His proposals come after Ukraine’s surprise invasion of Russia in August, where it still controls vast swaths of territory, and as Moscow’s forces advance toward the city of Pokrovsk in eastern Ukraine.

In Pokrovsk, a city once home to 60,000 people, AFP saw deserted streets, with most shops and windows barricaded.

Russian forces are now just 10 kilometers (six miles) from the city that Moscow has been trying to capture for weeks.

Evacuations Pokrovsk

This summer, Ukraine underwent an evacuation, but about 16,000 people still remained in the city.

Some of them are reluctant to decide to follow the authorities’ recommendations and evacuate.

“I don’t even have words to describe how difficult it is,” Alona Kozynets told AFP just before boarding the evacuation bus with her three children.

“We have worked for many years to build this and now we have to go,” she said.

Tears streamed down her face as she hugged her husband Yuri, who had stayed to work at the Pokrovsk mine.

“She and the kids are my whole life. My soul, my heart. And it’s simply impossible for anyone to live without their soul and their heart,” he said as the bus pulled away.

Ukrainian shelling and drone attacks on Russian-occupied areas of Donetsk region on Friday killed three people and injured dozens, said Denis Pushilin, head of the region appointed by Russia.