EU offers Ukraine $73 billion through 2027
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The World Bank estimates that Ukraine needs more than US$400 billion over a decade for its reconstruction – three times its gross domestic product.
PHOTO: REUTERS
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BRUSSELS - The European Union will provide Ukraine with €50 billion (S$73 billion) in aid for 2024 to 2027, the bloc’s president said on Tuesday, ahead of a gathering in London to secure short-term financing and money to rebuild the nation from Russia’s war.
Ukraine is seeking up to US$40 billion (S$54 billion) for the first part of a “Green Marshall Plan” for reconstruction from the London conference starting on Wednesday.
The World Bank estimates its needs at more than US$400 billion over a decade – three times Ukraine’s gross domestic product.
European Commission president Ursula von der Leyen said the aim was to “provide predictable finance to Ukraine on its EU path, together with global partners and the private sector”.
In a symbolic move, the EU granted Ukraine formal membership candidate status in 2022.
Sources said the EU will say in a report this week that Ukraine has met two out of seven conditions for formal accession talks to begin.
It will also highlight progress made despite the invasion in February 2022.
Of Tuesday’s aid pledge, €17 billion would come in free grants and the rest in the form of low-interest loans, said Mr Johannes Hahn, commissioner for budget and administration.
For 2023, the EU granted Ukraine €18 billion in macro-financial assistance.
Ukraine’s Prime Minister Denys Shmyhal thanked the EU for a “steadfast commitment to supporting Ukraine on our path towards EU membership”.
In Kyiv on Tuesday, Ukrainian officials said Russia attacked military and infrastructure targets across the country, including in the western city of Lviv.
The €50 billion figure comes after a review of the EU’s 2021 to 2027 shared budget, which has been depleted by the Covid-19 pandemic, the war in Ukraine and an energy crisis.
High inflation and interest rates have also doubled debt-servicing costs, said Mr Hahn.
The EU is asking countries to chip in an extra €66 billion, with an additional €15 billion to be assigned to manage irregular immigration, including by extending aid to countries in the Middle East and Africa to ensure more people stay there. REUTERS
People cleaning debris from an apartment building damaged by a Russian drone strike in Odesa, southern Ukraine.
PHOTO: EPA-EFE
