100 billion euros for Ukraine: EU prepares to create a new support fund
Фото: Reuters
Despite the protracted nature of Russia’s full-scale war against Ukraine, the European Union has no intention of reducing its support for Kyiv. Brussels is discussing the creation of a new long-term fund of 100 billion euros to guarantee stable financing of Ukraine’s needs for years to come.
This is reported by Bloomberg, citing its own sources.
It is noted that these funds could be included in the proposal for a new seven-year EU budget, which will be presented by the end of July. If member states agree to the initiative, payments could start in 2028.
It is expected that the format of the new assistance will be similar to the existing one: it involves grants and soft loans that the European Commission provides directly to the Ukrainian state.
However, the fund is still under discussion – other financing options are being considered in parallel. The future multi-year financial plan is to be presented in more detail on July 16. However, final decisions may be made later.
The European Commission has previously stressed that current financial commitments should be sufficient until 2027. But due to further defense spending, a slowdown in the economy, and reduced external support, the risks of Ukraine’s budget deficit are already increasing.
European Commissioner for Economic Affairs Valdis Dombrovskis confirmed that active work is underway on new support scenarios. According to him, the EU is ready to continue to help Ukraine: “as much as necessary.”
He also reported that the European Union is analyzing the possibility of using proceeds from frozen Russian assets as another financing tool, but final decisions will also depend on the IMF’s assessment of Ukraine’s financial needs.
Recall that the European Union has already declared commitments for 80 percent of the production of 2 million artillery shells for Ukraine.
As reported, the European Union is developing a plan to increase aid to Ukraine. Thus, the EU seeks to obtain additional billions of euros from frozen Russian assets by transferring them into “riskier investments.”
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