Brussels: The European Union has announced the disbursement of an additional EUR one billion from its exceptional loan to Ukraine, which is to be repaid with proceeds from immobilised Russian state assets held within the EU. This financial aid marks a significant step in the EU's ongoing support for Ukraine amidst the ongoing conflict with Russia.
According to Kuwait News Agency, this latest disbursement brings the total amount provided to Ukraine under this loan agreement to EUR five billion. The funds are part of a broader financial support program aimed at delivering approximately EUR 45 billion to address Ukraine's urgent budgetary needs resulting from the Russian war. The financial assistance is also designated to aid Ukraine's military efforts and reconstruction projects, including essential infrastructure repairs in the energy, water, and transport sectors.
The European Commission has expressed its readiness to expedite further disbursements based on Ukraine's requirements, as mandated by the Extraordinary European Council in March. In addition to the loan, the EU is set to receive EUR 2.1 billion from windfall profits generated by immobilised assets of the Russian Central Bank, managed by the Central Securities Depositories. This follows an earlier transfer of such funds in July, underscoring the EU's strategy of leveraging frozen Russian assets to support Ukraine.
The EU has reiterated that while the Russian Central Bank's financial assets remain frozen, the profits generated from these assets are being channelled to aid Ukraine. These financial measures underscore the EU's commitment to Ukraine during this challenging period.
EU Commission President Ursula von der Leyen has affirmed that Europe's commitment to Ukraine remains steadfast. She highlighted the EU's comprehensive efforts to bolster Ukraine and support a just and lasting peace on terms favorable to Ukraine. Von der Leyen described the financial aid as "an investment in a shared common future," reinforcing the EU's long-term commitment to Ukraine's stability and prosperity.