European Commission President Ursula von der Leyen announced a loan of up to 35 billion euros (approximately $39 billion) for Ukraine during her visit to Kyiv on Friday. She emphasized that this financial support is essential for the country to defend itself against Russian aggression and to endure the winter months.

At a joint press conference, Ukrainian President Zelenskiy stated that the funds would be allocated for energy, air defense systems, and military procurement, while also calling on allies to endorse a “victory plan” he has proposed by the end of the year.

During her visit, which marks the beginning of her second term leading the European Union’s executive body, von der Leyen reiterated the necessity of ongoing support from the 27-member bloc in light of the persistent Russian threats.

This loan is part of a broader initiative among the Group of Seven industrialized nations to generate funds through the utilization of frozen Russian assets, which were seized as part of sanctions imposed following the invasion of Ukraine.

Zelenskiy stated, “We will allocate the 35 billion primarily towards energy, defense, and constructing bomb shelters for children in schools, nurseries, and universities—this represents a significant shortfall for us,” while standing before the Ukrainian and EU flags. “Additionally, we will invest in weapons, focusing on those manufactured domestically, including drones and missiles. Our long-range drones are currently striking the enemy effectively and are more cost-efficient than those produced by our partners.”

Following Russia’s full-scale invasion of Ukraine in 2022, the G7 froze approximately $300 billion in Russian financial assets, committing to utilize these funds to support Ukraine, although discussions on the implementation of this mechanism took several months.

Von der Leyen remarked, “Russia continues to target your civilian energy infrastructure in a blatant and malicious manner, attempting to plunge your nation into darkness. I am here to assure you that the European Union stands ready to assist you in this challenge to maintain power.”

She announced that 160 million euros from the frozen Russian assets would be directed towards addressing Ukraine’s urgent humanitarian needs this winter.

Von der Leyen noted that Russia has incapacitated around 9 gigawatts (GW) of Ukraine’s energy infrastructure, which she described as the “power equivalent of the three Baltic states.”

She indicated that the European Union intends to restore 2.5 GW of power generation capacity and plans to boost exports to provide 2 GW of electricity to Ukraine.

Zelenskiy, who is scheduled to visit the United States next week, mentioned that he would discuss his victory strategy with U.S. President Joe Biden during their upcoming meeting. “The majority of the decisions outlined in the plan rely specifically on him (Biden). While other allies are also involved, certain aspects hinge on the goodwill and support of the United States,” he stated.

Zelenskiy has been consistently updating on the plan’s development but has revealed little about its specifics, only noting that it seeks to establish terms that are acceptable to Kyiv.

“The entire strategy is based on prompt decisions from our partners. It relies on actions that need to occur between October and December, without any delays in these processes,” he remarked.

Russian President Vladimir Putin has asserted that peace negotiations can only commence if Kyiv relinquishes significant territories in eastern and southern Ukraine to Russia and abandons its aspirations for NATO membership.

Zelenskiy has persistently called for the withdrawal of all Russian forces and the restoration of Ukraine’s post-Soviet borders.

On Friday, Russia’s foreign ministry claimed that the EU had “lost its mind” and was heading towards disaster by allocating more military aid to Ukraine.

Germany is poised to approve nearly 400 million euros in additional military assistance to Ukraine, as indicated in a finance ministry letter reviewed by Reuters.

This funding is supplementary to the approximately 8 billion euros allocated for Ukraine in the 2024 budget.