G7 leaders agreed in June to engineer a $US50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia's frozen central bank assets would be used as collateral, but progress in distributing the loans has been slow.
"We should make Russia pay for the destruction it caused," European Commission President Ursula von der Leyen told reporters at a news conference with President Vlodymyr Zelenskiy in Kyiv.
Von der Leyen said the EU has already provided Ukraine with more than 118 billion euros ($A193 billion) in military and economic assistance since the war began in February 2022, "but Russia's relentless attacks mean further support is necessary".
"Crucially, this loan will flow straight into your national budget. This will improve Ukraine's macro-financial stability and it will provide you with significant and much-needed fiscal space. You will decide how best to use the funds, giving you maximum flexibility to meet your needs," she said.
European Commission President Ursula von der Leyen is confident the loan can be delivered quickly. (AP PHOTO)
The loans would be underwritten by the windfall profits earned on almost $US300 billion in Russian assets, which have been frozen over its full-scale invasion of Ukraine. The vast majority of that money is held in EU nations, notably Belgium.
Von der Leyen said the EU is "confident that we can deliver this loan to Ukraine very quickly". The 27-nation bloc hopes other G7 countries will follow its lead and start providing loans too.
Zelenskiy said that his priorities are to rebuild Ukraine's energy network, erect more bomb shelters, improve schools and buy more weapons and ammunition.
Von der Leyen arrived in Ukraine on Friday focused on helping the country restore and reconnect 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 Leyen said it was the equivalent of all of Latvia, Lithuania and Estonia losing electricity.
Ukraine's winter runs from late October through March, with January and February the toughest months. The Europeans hope to help supply around 25 per cent of the 17 gigawatts of power that the country is likely to need this winter.
