EU's von der Leyen unveils up to 35 billion euro loan to Ukraine as part of G7 pledge.

European Commission President Ursula von der Leyen on Sept.

20 announced a loan of up to 35 billion euros (£39 billion) to Ukraine as part of a £50-billion pledge by the G7. "Relentless Russian attacks means Ukraine needs continued EU support," the chief of the EU's executive arm said during her visit to Kyiv. "The European Commission will provide a loan of up to 35 billion euros to Ukraine as part of the G7 pledge.

This is another major EU contribution to Ukraine's recovery." Von der Leyen arrived in Ukraine's capital earlier on Sept.

20 to discuss Europe's support in various areas "from winter preparedness to defense, to accession and progress on the G7 loans." The G7 agreed in June to provide Ukraine with a loan of £50 billion by the end of the year, covered by proceeds from immobilized Russian assets.

The plan now stands on shaky ground as the U.S., which was supposed to shoulder £20 billion of the sum, is reluctant to commit unless the EU extends the sanctions immobilizing Russian assets. Such a step requires a unanimous vote, which is currently being blocked by Hungary, the EU's most Kremlin-proximate member. The Financial Times (FT) reported on Sept.

17 that the EU is now drafting plans to provide the loan with or without U.S. support, aiming to gather between 20 billion and 40 billion euros (£22.3-44.5 billion). The outlet comments that the sum of 35 billion euros is a compromise that will allow Washington to step in at a later date. Ukraine is in dire need of such a financial injection as Russia targets its energy infrastructure with missiles and drones and presses its ground offensive in the east.

President Volodymyr Zelensky thanked the G7 for the pledged £50 billion loan but also urged the creation of a mechanism for the full confiscation of £300 billion in frozen Russian funds. Roughly two-thirds are held at Belgium-based financial service company Euroclear.

Von der Leyen arrives in Kyiv to discuss Ukraine's energy needs with Zelensky European Commission President Ursula von der Leyen arrived in Kyiv on Sept.

20 to discuss Ukraine's energy needs ahead of the coming winter.