Ukraine to Receive €35 Billion EU Loan by Year-End

Ukraine is expected to receive a new €35 billion loan from the European Union by the end of 2024. The European Commission emphasized the need for swift legislative procedures from both EU member states and the European Parliament to ensure that the funds are delivered on time.

During a speech at the European Parliament’s plenary session in Strasbourg, Executive Vice-President of the European Commission, Maroš Šefčovič, highlighted that this financial assistance is critical to providing Ukraine with the fiscal space it needs. This loan, which is part of the G7 commitments made in June, is seen as a necessary step to support Ukraine’s economic stability.

Šefčovič also noted the EU’s ongoing efforts to assist Ukraine in preparing for the upcoming winter. This includes repairing damaged energy infrastructure, restoring power grids, and stabilizing the energy sector. Last month, the European Commission approved a “winter plan” for Ukraine, providing €160 million in funding, in addition to the €2 billion already allocated for energy sector support.

The goal, Šefčovič stated, is to position Ukraine for peace negotiations under favorable conditions and to support the country on its path toward full membership in the European Union.

The G7 countries agreed in June to provide Ukraine with a $50 billion loan, which is to be repaid using interest generated from around $280 billion of frozen Russian assets. The European Commission’s proposal is to allocate €35 billion of this total as the EU’s contribution to Ukraine’s financial aid.