“The incessant Russian attacks mean that Ukraine needs the continued support of the European Union,” said Commission President Ursula von der Leyenhas taken advantage of his visit this Friday to kyiv (the eighth since the war of aggression by Russia began) to announce a new loan of 35 billion euros to the Government of Volodymyr Zelensky.
This is the fee corresponding to the European Union of the $50 billion credit that was announced in June by the G7 countries, backed by profits from frozen Russian assetsThe aim was to ensure sufficient funding for Ukraine in the medium term in the event of a possible victory by Donald Trump in the US elections in November. However, the implementation of this aid has proven to be more difficult than expected and the EU has decided to move forward alone.
At a joint press conference with Zelensky, von der Leyen said she was confident that the other G7 members would contribute their fair share. “It is important for us to be quick because the urgency is clear,” she said. kyiv’s funding needs have skyrocketed due to the destruction caused by Russian bombing. “It is right that Russia should pay for the reconstruction of the damage it has caused“, the president stressed.
[Von der Leyen visita Kiev para demostrar una vez más la “ayuda de la UE a Ucrania frente a Rusia”]
As part of the sanctions for the war, the EU keeps immobilized around 210 billion of euros of Central Bank of Russia since the outbreak of the war, which are blocked in Euroclear, one of the world’s largest securities depositories based in Brussels. These assets generate around 3 billion euros a year and it is this money that will be used to support the loan to Ukraine.
To implement its share of the loan, the European Executive has designed a mechanism that in theory – and in the immediate future – will allow it to avoid a possible veto by Viktor Orbán’s Hungary, Vladimir Putin’s closest ally in the EU. However, Washington still demands more guarantees that Russian assets will remain frozen in the long term as a condition for paying their quota (in order to limit the risk of default), something that Brussels cannot promise precisely because of the risk of a Budapest blockade.
For the moment, the 35 billion euro EU loan, which should be ready by January, will go directly to the Ukrainian national budget The EU will use the funds to improve the country’s macro-financial stability and increase its budgetary room for manoeuvre. The Zelensky government will have full freedom over how to use the funds, with maximum flexibility to cover the most urgent needs. European aid will free up national resources to strengthen military capabilities and defend against Russian aggression, von der Leyen explained.
The President of the Commission has also announced a additional aid of 160 million euros (of which 100 million also comes from the profits of Russian assets frozen in Europe) specifically intended for energy sector Ukraine. Russia is concentrating its military offensive on destroying Ukraine’s civilian energy infrastructure on the eve of winter in order to “plunge the country into darkness” and cold, Von der Leyen has denounced.
Brussels has designed A winter plan for Ukraine The EU is working on three priorities. The first two are to repair the damage caused by Russian bombing and to improve the interconnection of kyiv with the EU electricity grid. With these two pillars, the EU hopes to cover 25% of Ukraine’s needs for the winter. The third pillar is to stabilise production in the country itself and improve the protection of energy infrastructure.
During her visit to kyiv, Von der Leyen said she was “deeply impressed by the speed and high quality with which Ukraine is moving forward” in its reform process to be able to join the EU, although she also made it clear that it is “hard work based on merit.” The process of kyiv’s accession This will be one of the priorities of his second term at the head of the Commission, he said.
So far, the EU, its Member States and European financial institutions have together provided 118.3 billion euros in grants and loans to support the war effort and Ukraine’s economy, help maintain basic services and provide early reconstruction, humanitarian assistance and help to those fleeing war in the EU.
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