EU plans €100 billion support package for Ukraine - Bloomberg leaks details
If the decision is approved, payments will begin in 2028 (Photo: Getty Images)
Russia’s war against Ukraine shows no signs of ending. In response, the EU is considering creating a €100 billion fund to support Kyiv, according to Bloomberg.
Sources say the money could become part of the EU’s proposal for the next seven-year budget, which is expected to be presented later this month.
If member states approve the plan within the framework of the budget agreements, funding would begin in 2028 to provide stable financial assistance to the war-torn country.
The new funding agreement will follow the existing model, under which the European Commission provides aid to Ukraine through grants and low-interest loans.
At the same time, the idea is being considered alongside other options and will be discussed before the details of the next Multiannual Financial Framework (MFF) are published. According to sources, this is expected to happen on July 16, although some elements may be introduced at a later stage.
Sources also said the European Commission informed EU finance ministers in June that Ukraine's financial needs must be covered through the beginning of 2027. Additionally, this year’s planned €8.4 billion increase in defense spending is expected to be financed domestically.
The European Commission has also warned that, due to the ongoing war, reduced international aid, and weaker economic activity, a budget deficit may arise.
EU Commissioner for Economy Valdis Dombrovskis told reporters on Tuesday that they are currently assessing and working on various options to ensure funding for the coming year. He added that the bloc is ready to provide all the necessary support to Ukraine for as long as it takes.
In addition, Dombrovskis stated that the European Commission will explore its available options to increase assistance through the EU budget, as well as by utilizing potential revenues from frozen Russian sovereign assets once the IMF evaluates Ukraine’s potential funding shortfall.
Support for Ukraine
The Financial Times recently reported that Brussels is urgently exploring ways to cover a $19 billion budget shortfall in Ukraine next year.
The reason is that Kyiv is facing a decline in US support and a worsening outlook for a ceasefire with Russia.
