EU Mulls €100 Billion Fund for Ukraine in Long-Term Budget Plan

The European Union is weighing a proposal to create a €100 billion fund for Ukraine as part of its next seven-year budget framework, aiming to ensure sustained support for Ukraine.

The Gaze reports on this with reference to Bloomberg.

According to sources familiar with the discussions, the fund would become part of the EU’s Multiannual Financial Framework (MFF) for 2028-2034, which is expected to be unveiled by the European Commission later this month. 

If approved by member states, the disbursement of funds could begin in 2028 and would continue to provide a financial lifeline to Ukraine.

Since the beginning of Russia’s full-scale invasion three and a half years ago, the EU has committed nearly €160 billion in aid to Ukraine. 

This includes a €50 billion package of grants and loans running through 2027, and a joint $50 billion loan initiative with the G7, backed by profits from immobilized Russian central bank assets.

The new fund would follow the same model, relying on a combination of grants and low-interest loans administered by the European Commission. 

Disbursements would likely be conditional on Ukraine’s continued implementation of reforms required for eventual EU membership.

Though the Commission declined to comment on the specific elements of the upcoming budget proposal, EU Economy Commissioner Valdis Dombrovskis confirmed on Tuesday that Brussels is actively evaluating new mechanisms to finance Ukraine’s needs next year and beyond. 

“We are now indeed assessing and working on different options,” Dombrovskis said. “The EU is ready to provide all necessary support for Ukraine for as long as it’s needed.”

As The Gaze reported earlier, Brussels is also urgently looking for ways to cover Ukraine's budget deficit of up to $19 billion next year.