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EU proposes $55 billion financial aid package for Ukraine

by Dinara Khalilova June 21, 2023 12:08 AM 1 min read
European Commission President Ursula von der Leyen speaks during a press conference ahead of the G7 Summit in Japan, at the European Council in Brussels on May 15, 2023. (KENZO TRIBOUILLARD/AFP via Getty Images)
This audio is created with AI assistance

The European Union has proposed a four-year financial assistance package for Ukraine worth 50 billion euros ($55 billion), EU Commission President Ursula von der Leyen said on June 20.

The assistance will be administered through loans and grants, according to von der Leyen. The reserve aims to provide Ukraine with "perspective and predictability" as well as incentivize other donors to step up their support.

"It will allow us to calibrate our financial support according to the evolution of the situation on the ground because we all know that a war requires at most flexibility from us," the official said at a press conference.

Bloomberg first reported the EU's plan to offer the package. According to the publication's sources, it would help finance Kyiv's current expenditures and urgent reconstruction.

The package should be financed by contributions from member states and cover the period of 2024-2027, Bloomberg wrote. The EU will distribute the package under the condition that Ukraine implement reforms on the rule of law and address corruption.

According to the World Bank's assessment, Ukraine will need at least $411 billion for recovery and reconstruction. This figure is equivalent to 2.6 times Ukraine's projected gross domestic product in 2022.

Anders Åslund: Preparing for Ukraine’s reconstruction
As Ukraine’s counteroffensive gets underway, Western countries must help liberate all Ukrainians living under Russian occupation. But Western assistance must not end once Russia is defeated. Ukraine’s supporters must also help its postwar recovery. The Ukraine Recovery Conference in Lon…
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