European Commission President Ursula von der Leyen said Wednesday the European Union will press ahead with financial and military support for Ukraine while bracing for extended economic fallout from the Middle East crisis, particularly on energy prices and fertiliser supplies.
Speaking at the European Parliament, von der Leyen said the EU would disburse €45 billion to Ukraine in the coming weeks as part of a broader €90 billion package agreed earlier this year. She said roughly one-third of the tranche would support Ukraine’s budgetary needs, while the rest would fund defence, including a €6 billion initiative focused on drones produced in Ukraine.
“Our message is clear: we will continue our support to the Ukrainian people and their armed forces,” she said, adding that the bloc had also adopted its 20th round of sanctions against Russia.
Von der Leyen argued that sanctions were increasingly weighing on Russia’s economy, citing rising inflation and interest rates. She also accused the Kremlin of tightening control over information flows, describing it as a “digital Iron Curtain.”
Turning to the Middle East, von der Leyen said a fragile lull in fighting offered a window for diplomacy but warned that the economic consequences of the conflict could persist for months or years. She stressed the importance of maintaining freedom of navigation in the Strait of Hormuz and said any long-term settlement would need to address Iran’s nuclear and missile programs.
The Commission president said the crisis had already driven up Europe’s fossil fuel import bill by more than €27 billion in just two months, without any increase in supply.
“This is the second major energy shock in four years,” she said. “The lesson is clear: Europe cannot remain overly dependent on imported fossil fuels.”
Von der Leyen called for accelerated investment in domestically produced energy, including renewables and nuclear power, arguing that countries with a higher share of low-carbon energy have been less exposed to price volatility.
She pointed to Sweden as an example, where electricity prices are less sensitive to fluctuations in gas markets due to its reliance on renewables and nuclear energy.
The European Commission last week presented a set of measures aimed at mitigating the impact of rising energy costs. These include stronger coordination among member states on gas storage and fuel reserves, as well as joint efforts to manage oil stocks and refine supply.
Von der Leyen also urged governments to target financial support more precisely, warning against broad subsidies that could strain public finances and distort demand. During the previous energy crisis, she said, only a fraction of the more than €350 billion in emergency spending reached the most vulnerable households and businesses.
She further emphasized the need to curb energy demand through efficiency measures, electrification and expanded use of digital technologies, while acknowledging that demand is expected to rise with the growth of data centers and artificial intelligence.
Electricity currently accounts for less than a quarter of the EU’s final energy consumption, she said, a level she described as insufficient for a region with limited fossil fuel resources.
Von der Leyen said the Commission would present an Electrification Action Plan by the summer, building on earlier proposals to modernize Europe’s power grids and accelerate the transition away from fossil fuels.
She also highlighted the role of the EU’s next long-term budget, set to begin in 2028, in supporting investment in energy, defence and competitiveness. With repayments of pandemic-era borrowing looming, she said new sources of EU revenue would be essential.
“Without new own resources, the choice is stark: higher national contributions or reduced capacity to act,” she said.
Von der Leyen concluded by urging unity among member states in addressing overlapping geopolitical and economic challenges, saying coordinated action would be critical to maintaining stability and competitiveness.
