EU to Loan Ukraine $39B to Rebuild     09/20 06:01

   The European Union pledged on Friday to lend Ukraine up to 35 billion euros 
($39 billion) as part of a loan package organized by the Group of Seven major 
industrial nations, as it seeks to help the country repair and reconnect its 
war-shattered power grid.

   KYIV, Ukraine (AP) -- The European Union pledged on Friday to lend Ukraine 
up to 35 billion euros ($39 billion) as part of a loan package organized by the 
Group of Seven major industrial nations, as it seeks to help the country repair 
and reconnect its war-shattered power grid.

   "You will decide how best to use your funds," European Commission President 
Ursula von der Leyen told President Vlodymyr Zelenskyy in Kyiv. The Ukrainian 
leader said that his priorities are to rebuild the energy network, build more 
bomb shelters, improve schools and buy more weapons.

   G7 leaders agreed in June to engineer a $50 billion loan to help Ukraine in 
its fight for survival. Interest earned on profits from Russia's frozen central 
bank assets would be used as collateral, but progress has been slow in 
distributing the money.

   Von der Leyen arrived in Ukraine on Friday focused on helping the country to 
restore its electricity grid and boost its heating capacity as winter 
approaches.

   Around half of Ukraine's energy infrastructure has been destroyed during the 
war with Russia, and rolling electricity blackouts leave parts of the east in 
darkness for four hours at a time. Von der Leyden said it was the equivalent of 
all of Latvia, Lithuania and Estonia losing electricity.

   Meanwhile, winter is approaching.

   "Heating season starts in two weeks and Russia's relentless attacks on 
Ukraine's civilian energy infrastructure aims to inflict maximum damage," von 
der Leyen said as she arrived in Kyiv for talks with Zelenskyy. "We will help 
Ukraine in its brave efforts to overcome this."

   The main aim is to help Ukraine decentralize its power grid, and to become 
less reliant on the big power stations that make easier targets for Russian 
forces. Around 260 missiles rained down in a major attack on energy 
infrastructure late last month.

   The Europeans have already sent more 10,000 generators and transformers, and 
they're supplying small and more mobile gas turbines too. These types of 
electricity-providing equipment are harder to hit and easier to repair.

   Ukraine's winter runs from late October through March, with January and 
February the toughest months. The Europeans hope to help supply around 25% of 
the 17 gigawatts of power that the country is likely to need this winter.

   One aim of the EU assistance is to provide an incentive for people to stay 
in Ukraine. About 4 million people have fled since the war began on Feb. 24, 
2022, often to Poland and other neighboring countries.

   The EU is providing assistance, such as short-term help to find a place to 
stay, jobs or education. But recently the number of people leaving has climbed. 
The European Commission, the EU's powerful executive branch, estimates that 
10,000 more people are applying for help each week.

   On Thursday, the commission announced that it would provide an extra 160 
million euros ($180 million) to help fortify Ukraine's energy network. Of that, 
100 million euros ($112 million) come from the windfall profits the EU has 
earned from interest on frozen Russian assets.

   Von der Leyen said the plan is to make "Russia pay for it through the 
revenue generated by their frozen assets." Denmark is also leading the charge 
on using the money to place orders for weapons and military equipment directly 
with Ukraine's defense industry.