The European Union plans to create a new €100 billion fund for long-term support to Ukraine, as Europe sees no signs of the war ending.
Source: Bloomberg, citing informed sources
Details: Bloomberg reported that these funds could be part of the EU's proposal for its next seven-year budget, which is to be presented in July. If agreed by member states, funding will begin in 2028, providing stable assistance to Ukraine.
It is noted that since the start of Russia's full-scale invasion three and a half years ago, the EU has already provided Ukraine with nearly €160 billion. This includes a €50 billion package of grants and loans, estimated until 2027. In addition, together with the G7 countries, the EU has created a separate US$50 billion credit facility using revenues from frozen Russian assets.
The new fund is planned to be implemented using a similar model: the European Commission will provide funding in the form of grants and cheap loans. Most of the payments will be linked to reforms necessary for Ukraine's integration into the EU.
The proposal is expected to be discussed before the publication of the next EU Multiannual Financial Framework, scheduled for 16 July. However, according to Bloomberg sources, some details may be disclosed later.
EU Economy Commissioner Valdis Dombrovskis told reporters on Tuesday 8 July that the EU is currently examining various options to secure funding for next year.
"The bloc is ready to provide all necessary support for Ukraine for as long as it’s needed," Dombrovskis said.
He also noted that the European Commission is considering options to increase aid not only from the EU budget, but also from revenues from frozen Russian sovereign assets after the International Monetary Fund assesses Ukraine's potential financing gap.
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