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Ukraine may not receive 50 billion euros of aid from EU - Financial Times

Ukraine may not receive 50 billion euros of aid from EU - Financial Times Illustrative photo (Getty Images)
Author: Maria Kholina

Ukraine's chances of securing a substantial €50 billion financial aid package from European Union countries are in jeopardy due to internal disagreements within the union, according to the Financial Times (FT).

The FT reports that disputes within the EU regarding the allocation of funds to Ukraine are jeopardizing crucial promises made to Kyiv several months ago. This comes at a time when the flow of financial and military support from the United States has practically halted due to congressional debates.

Sources of the Financial Times indicate that EU member states are far from reaching an agreement on granting Ukraine the €50 billion. The European Union's efforts to reach a compromise on providing assistance to Ukraine are complicated by the victory of the right-wing party in the Netherlands' elections and Germany's recent court decision to limit government borrowing. Sources also note that active discussions will continue leading up to and during the EU summit scheduled for December 14-15 in Brussels.

"It is crucial that the continued support for Ukraine remains and that we Europeans play our role," Belgian Prime Minister Alexander De Croo said in a comment to the FT.

An unnamed EU representative emphasized that approving financial support for Ukraine is a pivotal moment.

"If you say you stand by Ukraine, you have to step up to the plate," he stressed.

However, some EU officials argue that negotiations on the EU budget have always been and will continue to be challenging, but a compromise is still possible in this case. It is expected that a revised aid package will be proposed before the summit.

"I think the doom and gloom around this issue is vastly over-exaggerated. We are not going to allow Ukraine to experience a sovereign default," said one of the EU officials involved in the discussions.

EUR 50 billion aid package from the EU

In June, the European Commission proposed creating a special mechanism for Ukraine, providing grants and loans amounting to €50 billion until 2027, replacing the current EU support through the Macro-Financial Assistance Program.

Hungary remains the only country consistently attempting to block EU aid to Ukraine, as well as sanctions against Russia.

In November, in a letter addressed to the President of the European Council, Charles Michel, Hungarian Prime Minister Orban threatened to block all EU assistance to Ukraine. To overcome Budapest's veto, the European Commission approved advance payments of €900 million to Hungary on November 23, which were previously frozen.