On September 19th, European Commission President Ursula von der Leyen announced that the European Union will provide Ukraine with 160 million euros in aid to address their urgent humanitarian needs this winter. Of this amount, 100 million euros will come from the profits of frozen Russian state assets.
According to von der Leyen, 60 million euros of the humanitarian aid will be used for shelters and heating equipment, while the remaining 100 million euros will go towards repair work and renewable energy initiatives.
She highlighted that Russia has destroyed around 9 gigawatts of Ukraine’s energy infrastructure, which is equivalent to the total electricity consumption of the Baltic States combined.
“We need to hold Russia accountable for the damage it has caused, and we understand that more is needed. Therefore, we must continue transferring profits from frozen Russian assets to Ukraine’s energy recovery capacity,” von der Leyen stated.
In addition to cash assistance, the EU will also assist in repairs and additional electricity exports. The International Energy Agency warned on Thursday that Ukraine could face a power shortage of 6 gigawatts this winter, especially with the increasing demand during peak electricity usage.
In Lithuania, a fuel-powered plant is being dismantled and will be rebuilt in Ukraine. 80% of Ukraine’s thermal power plants have been destroyed, and one-third of hydroelectric capacity is also offline.
Von der Leyen outlined, “Our goal is to restore 2.5 gigawatts of power generation capacity, which is roughly 15% of Ukraine’s demand.”
Furthermore, she highlighted that the EU will increase exports to provide Ukraine with an additional 2 gigawatts of electricity.
Back in May, the EU agreed to use profits from frozen Russian state assets to assist Ukraine.
Since Russia’s full-scale invasion of Ukraine, approximately 190 billion euros of Russian state assets held in Brussels-based securities depository Euroclear have been frozen. The generated profits amount to an annual value between 2.5 and 3 billion euros.
In late July, the EU announced the initial provision of 1.5 billion euros to Ukraine.
At the time, the Kremlin described this as “theft” and stated they would take legal action against those involved in making this decision.
Reuters reported that the German government is planning to approve an additional 4 billion euros in military assistance to Ukraine. Germany has allocated around 80 billion euros in its 2024 budget for Ukraine.
Germany is one of Ukraine’s largest supporters in terms of military aid. The German Ministry of Defense is concerned that Ukraine urgently needs additional military supplies and equipment to resist Russia as the war continues.
The letter from the German Ministry of Finance to the lower house budget committee stated, “Given the ongoing deterioration of the military situation in Ukraine and the serious risks facing Ukraine in the defense battle, without significant increased material support, they might be defeated.”