The EU will provide Ukraine with a loan of 35 billion euros for 40 years

The European Union will provide Ukraine with a loan of up to 35 billion euros. This was announced by the head of the European Commission, Ursula von der Leyen. Funds for the loan will be taken from profits from Russian assets frozen in Europe. Ukraine will have to return it within 40 years.

At a joint press conference with the President of Ukraine on Friday, von der Leyen said that the provision of a large loan is another step in fulfilling the Group of Seven’s long-term support for Ukraine. The commitments announced by the leaders of the G7 countries at the NATO summit in Vilnius in July include both military assistance and assistance in rebuilding the country during and after the war.

In response, Volodymyr Zelensky said that the allocated funds will be invested primarily in the support of the energy sector, the construction of shelters and other infrastructure for the protection of the civilian population, as well as in the development of the Ukrainian defense industry. He also mentioned the plans of the Ukrainian leadership for new purchases of Western weapons, primarily anti-aircraft defense equipment.

The Financial Times clarifies that the mentioned amount is the profit that the European Union receives from the assets of the Central Bank of Europe, which were frozen after the Russian invasion of Ukraine. Currently, the EU has frozen assets of Russian state structures worth approximately 200 billion euros. The legal mechanism that would allow them to be confiscated has not yet been developed, however, the EU seizes and transfers the proceeds from them to the needs of Ukraine.