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EU to Loan Ukraine $39B to Rebuild 09/20 06:01
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 repair and reconnect its
war-shattered power grid.
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 repair
and reconnect its war-shattered power grid.
"You will decide how best to use your funds," European Commission President
Ursula von der Leyen told President Vlodymyr Zelenskyy in Kyiv. The Ukrainian
leader said that his priorities are to rebuild the energy network, build more
bomb shelters, improve schools and buy more weapons.
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 has been slow in
distributing the money.
Von der Leyen arrived in Ukraine on Friday focused on helping the country to
restore 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 Leyden 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 as she arrived in Kyiv for talks with Zelenskyy. "We will help
Ukraine in its brave efforts to overcome this."
The main aim is to help Ukraine decentralize its power grid, and to become
less reliant on the big power stations that make easier targets for Russian
forces. Around 260 missiles rained down in a major attack on energy
infrastructure late last month.
The Europeans have already sent more 10,000 generators and transformers, and
they're supplying small and more mobile gas turbines too. These types of
electricity-providing equipment are harder to hit and easier to repair.
Ukraine's winter runs from late October through March, with January and
February the toughest months. The Europeans hope to help supply around 25% of
the 17 gigawatts of power that the country is likely to need this winter.
One aim of the EU assistance is to provide an incentive for people to stay
in Ukraine. About 4 million people have fled since the war began on Feb. 24,
2022, often to Poland and other neighboring countries.
The EU is providing assistance, such as short-term help to find a place to
stay, jobs or education. But recently the number of people leaving has climbed.
The European Commission, the EU's powerful executive branch, estimates that
10,000 more people are applying for help each week.
On Thursday, the commission announced that it would provide an extra 160
million euros ($180 million) to help fortify Ukraine's energy network. Of that,
100 million euros ($112 million) come from the windfall profits the EU has
earned from interest on frozen Russian assets.
Von der Leyen said the plan is to make "Russia pay for it through the
revenue generated by their frozen assets." Denmark is also leading the charge
on using the money to place orders for weapons and military equipment directly
with Ukraine's defense industry.
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