EU Offers Ukraine €35 Billion Loan with Frozen Russian Assets Amid US Contribution Talks Stalemate

During a recent visit to Kyiv, Ursula von der Leyen, the President of the European Commission, announced that the European Union is set to extend a 35 billion euro ($39 billion) loan to Ukraine. This financial support will be backed by frozen Russian assets and is aimed at providing a much-needed financial boost to the war-torn nation. This announcement comes on the heels of stalled talks between American and European officials, leading European leaders to affirm that the loan will proceed without contributions from the United States for the time being.

Continued European Support

Ursula von der Leyen's visit to Ukraine was marked by a meeting with President Volodymyr Zelensky, where she reiterated Europe's unwavering commitment to supporting Ukraine amidst the ongoing conflict with Russia. The timing of her visit is significant as it precedes President Zelensky's anticipated trip to New York for the United Nations General Assembly.

The announced loan, while substantial, is smaller than the $50 billion previously agreed upon by the United States and Group of 7 economies. The loan is expected to provide Ukraine with a much-needed infusion of funds, without placing an additional burden on the budgets of European countries. It represents a critical step in supporting Ukraine's financial stability during these challenging times.