EU eyes providing financial assistance to Ukraine for about 50B euros
The European Union is ready to propose a financial aid package of around €50 billion ($55 billion) to support Ukraine, News.Az reports citing Bloomberg.
The proposal from the European Commission, the EU’s executive arm, will help finance the Ukrainian government’s current expenditures and pay for urgent reconstruction priorities, according to people familiar with the plan.
The package, still subject to changes before it’s made public, will be announced June 20 ahead of a conference this week in London, where donors will discuss how to rebuild the country and Ukrainian officials will seek private sector involvement.
The commission wants to avoid a burdensome reconstruction instrument for a country at war and will offer the aid in the form of grants, concessional loans and guarantees, said the people, who spoke on condition of anonymity because the discussions are private.
The proposal, part of the review of the EU’s long-term budget, would cover the period from 2024-2027. It would provide less annually than the €18 billion in financial assistance the EU is offering this year. The World Bank has estimated that Ukraine’s reconstruction costs could amount to $411 billion.
The cash will be disbursed provided Ukraine fulfills reforms to improve the rule of law and address corruption. The reforms aim to put Ukraine on a path to become an EU member with leaders to decide whether to open negotiations by the end of the year.
The commission has previously said it would cover the bulk of the reconstruction needs, although the bloc expects other donors and the private sector to contribute to the efforts. The EU is also looking at options to use frozen assets, including from Russia’s central bank.