THE European Union pledged today to lend Ukraine up to €35 billion (£29bn) as part of a loan package organised by the Group of Seven rich countries to help the country repair and reconnect its war-shattered power grid.

European Commission president Ursula von der Leyen told President Volodymyr Zelensky in Kiev: “You will decide how best to use your funds.”

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 loan equivalent to £38bn to help Ukraine. Money taken from Russia’s frozen central bank assets would be used as collateral, but progress has been slow in distributing it.

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. 

Meanwhile, winter is approaching.

Ms von der Leyen said: “Heating season starts in two weeks and Russia’s relentless attacks on Ukraine’s civilian energy infrastructure aims to inflict maximum damage.” 

This comes a day after the commission announced that an extra €160 million (£130m) would be provided to help fortify Ukraine’s energy network.