EU pledges to loan Ukraine up to $39 billion to help rebuild its economy and power grid

https://apnews.com/article/eu-ukraine-energy-repairs-power-war-leyen-c34f6d182d7d9f5e9a30436374c41674

13 Comments

  1. >KYIV, Ukraine (AP) — The European Union pledged on Friday to lend Ukraine up to 35 billion euros ($39 billion) as part of a loan package organized 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.

    >Von der Leyen arrived in Ukraine on Friday focused on helping the country to restore and reconnect its electricity grid and boost its heating capacity as winter approaches.

    >Around half of Ukraine’s energy infrastructure has been destroyed during the war with Russia, and rolling electricity blackouts leave parts of the east in darkness for four hours at a time. Von der Leyen said it was the equivalent of all of Latvia, Lithuania and Estonia losing electricity.

    >Meanwhile, winter is approaching.

    >“Heating season starts in two weeks and Russia’s relentless attacks on Ukraine’s civilian energy infrastructure aims to inflict maximum damage,” von der Leyen said. “We will help Ukraine in its brave efforts to overcome this.”

  2. Loan? If Ukraine joins the EU they’ll be giving them about that much per year and it won’t be as a loan.

  3. I wonder where the eu is getting this money when almost all them can pay their own loans from each other

  4. What is the point of rebuilding the power grid if it will just get bombed again? How can they prevent this?

  5. Meanwhile, conservatives in America are crying about humans seeking a better life are destroying the world.

  6. Remarkable_Soil_6727 on

    Energy infrastructure isnt going to stop being destroyed until they get their hands on long range missiles to destroy weapon factories within Russia.

  7. Dazzling-Reveal-3103 on

    If they built few nuclear reactors that would be sick, but the again, asshole Russia will do something stupid.