The European Commission proposed a loan of up to 35 billion euros (about $39 billion) for Ukraine on Friday, September 20.
As per multiple outlets, this initiative aims to help the country’s increased needs resulting from the destruction of infrastructure due to Russian attacks.
This announcement was made by Commission President Ursula von der Leyen during her visit to Kyiv.
This initiative is part of a broader plan by G7 nations to generate funds using frozen Russian assets resulting from sanctions against Moscow for its invasion.
The proposal requires approval from the European Parliament and a qualified majority of the 27 EU member governments.
Ukraine is facing rising costs due to more than two years of intense conflict, which has severely impacted its infrastructure, including the loss of around 9 gigawatts of energy capacity.
The Commission anticipates that Ukraine's financing needs will increase to 38 billion euros by 2025, which is 12 billion euros more than previous projections made in June.
