Fri Sep 20 11:12:16 UTC 2024: ## EU Pledges €35 Billion Loan to Ukraine, Part of G7’s $50 Billion Aid Package

**Kyiv, Ukraine** – During a visit to Kyiv on Friday, European Commission President Ursula von der Leyen announced a €35 billion EU loan to Ukraine, a key part of a G7 agreement to provide Ukraine with $50 billion in aid. The funding will be backed by windfall profits from frozen Russian assets.

“Relentless Russian attacks mean Ukraine needs continued EU support,” von der Leyen stated alongside Ukrainian President Volodymyr Zelenskyy. “This is another major EU contribution to Ukraine’s recovery.”

The loan, intended to be the EU’s share of the G7 plan, is designed to improve Ukraine’s financial stability and provide fiscal space. Zelenskyy emphasized that Kyiv plans to use the funds for building bomb shelters, drone and missile production, energy supply bolstering, and purchasing Western air defense systems.

The €35 billion loan is contingent on a broader G7 agreement, which has faced delays due to technical negotiations between EU and US officials. To secure the deal, the US has requested guarantees from European allies ensuring the frozen Russian assets remain frozen until Russia pays reparations. This requires the EU to extend its sanctions regime against Russia, currently renewed every six months, to a longer timeframe.

While the European Commission has presented options for extending the sanctions regime, achieving a consensus among member states remains challenging. Hungary’s opposition and technical concerns raised by other members have stalled progress.

Despite the ongoing negotiations, von der Leyen expressed confidence that other G7 members will contribute their share. She emphasized the urgency of the situation and the need to finalize the procedures by the end of the year.

The first tranche of the €35 billion loan could be disbursed later this year, with subsequent payments scheduled throughout 2025. The funds are expected to be disbursed in installments, providing incentives for Ukraine to implement reforms.

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