Kiev, 20 September 2024 (dpa/MIA) - The European Commission plans to provide Ukraine with up to €35 billion ($39 billion) in loans, European Commission President Ursula von der Leyen said on Friday in Kiev.

"Russia's relentless attacks mean further support is necessary," von der Leyen said, speaking alongside Ukrainian President Volodymyr Zelensky.

The loan is to be "backed by the windfall profits from immobilized Russian assets," she said. "Russia pays for the reconstruction of the damages it caused."

Around €210 billion in Russian state assets held by financial institutions in the bloc are currently frozen under EU sanctions, according to European Commission figures.

These assets generate around €2.5 to €3 billion in interests annually, the commission said.

Ukraine was free to decide how to use the loan, von der Leyen said, adding that support for the country's military and defence industry was Kiev's most pressing need.

The funds are part of a $50 billion loan package announced by the seven major Western industrialized nations (G7) in June.

EU member states Germany, Italy and France are G7 nations, and EU representatives frequently attend the group's meetings. The remaining amount is to be raised by other G7 countries.

"I'm absolutely confident that the others will also do their share," von der Leyen said.

The EU's priority was to be "fast because the urgency is clear," she said, adding that she hopes the bloc can finalise its adoption procedure by the end of the year.

The commission's plan still has to be approved by the European Parliament and a majority of EU countries.

As the plan does not require unanimous approval of all 27 EU members, it is less likely to get delayed.

In the past, Hungarian Prime Minister Viktor Orban, who maintains good relations with Russia, has repeatedly hindered the bloc's efforts to support Ukraine.

Since Russia's full-scale invasion of Ukraine in February 2022, Budapest has tried to prevent Kiev's EU accession negotiations, delayed sanctions and blocked offers of financial and military aid.

The EU and its member states have so far supported Ukraine with almost €120 billion in grants and loans, according to the commission.

The money has been used to support Ukraine's war effort, its economy and for humanitarian assistance.

Photo: EPA