EU pledges $39bn loan to Ukraine for energy grid rebuild

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The European Union has committed to loaning Ukraine up to 35 billion euros ($39bn) to rebuild its power grid and support its economy after extensive damage from Russian attacks. European Commission President Ursula von der Leyen made the announcement during her visit to Kyiv, where she met President Volodymyr Zelenskyy. The funds will help Ukraine restore its war-torn energy infrastructure and bolster its heating capacity as the harsh winter months approach.

The loan is part of a larger $50bn initiative by G7 nations to fund Ukraine’s recovery, using profits from frozen Russian assets. Zelenskyy outlined his priorities, which include rebuilding the energy network, increasing bomb shelters, improving schools, and acquiring more weapons.

Around half of Ukraine’s energy infrastructure has been destroyed since Russia’s full-scale invasion in 2022, leaving parts of the country in rolling blackouts. Europe aims to provide 25 percent of Ukraine's winter power needs, while Russian strikes have knocked out about 9 gigawatts of energy, equivalent to the combined power of Latvia, Lithuania, and Estonia.

Von der Leyen emphasized the EU’s ongoing commitment to supporting Ukraine's recovery and resilience as it faces the continuing war.