Ukraine risks running out of money, EU eyes extra aid
Photo: Ukraine risks running out of money (Getty Images)
The EU will ask international partners to provide additional funding to Ukraine, which risks running out of money in its fifth year of full-scale war with Russia, Bloomberg reports.
According to the agency, EU leaders will call "for intensified outreach to third countries to help close the remaining gap of €30 billion ($34.9 billion)". The summit will take place in Brussels at the end of this month.
As Bloomberg points out, in December, the EU agreed to provide Kyiv with €90 billion in loan assistance for this year and next. The package is planned to be financed through joint borrowing after several member states opposed the use of frozen assets of the Russian central bank to secure the loan.
However, the package has not yet been financed due to disputes between member states.
Last month, Hungary vetoed the aid due to a conflict over the Druzhba oil pipeline, which supplies Russian oil through Ukraine. Kyiv denies Budapest's accusations.
"The dispute puts Ukraine and its allies in a bind. Kyiv could run out of funding unless the first disbursement of the EU package arrives by early April," the report says.
Some countries have proposed sending a fact-finding mission involving Hungarian and Slovak experts to resolve the dispute.
"We agreed to provide Ukraine with a €90 billion euro loan, and this we also must deliver. A broken pipeline shouldn’t hold Ukraine’s defense hostage," says EU chief diplomat Kaja Kallas.
The EU has also appealed to other countries, particularly the G7 nations, to provide transitional financing to cover Ukraine's needs. The issue will be discussed in April at a meeting of finance ministers in Washington during the IMF meeting.
According to the agency, financial problems complicate the provision of military equipment to Ukraine, including air defense systems.
According to sources familiar with the situation, the conflict surrounding Iran is affecting US weapons stocks and could potentially reduce their availability to Ukraine.
Blocking of EU aid to Ukraine
Earlier, European Parliament President Roberta Metsola signed an agreement to provide Ukraine with a €90 billion loan for 2026-2027. These funds are intended to ensure the country's stability in the context of the war.
However, Hungary has blocked the funding. Budapest has issued an ultimatum: the loan will only be approved after Ukraine resumes the transit of Russian oil through the Druzhba pipeline. This position was officially announced by Hungarian Foreign Minister Péter Szijjártó.
In response, European Council President António Costa called on Hungary to stop blackmailing and to comply with the EU's joint decision to help Kyiv.
