EU Unveils New Support Package for Ukraine’s Economy and Defense
The European Union is providing Ukraine with nearly €6 billion in financial aid to support Ukraine's resilience in the war against Russia.
The Gaze reports on it, referring to European Pravda.
European Commission President Ursula von der Leyen announced a new financial support package for Ukraine, stressing that it is time to give new impetus to countering Russia's aggression and forcing Vladimir Putin to the negotiating table.
According to her, the European Union must continue to raise the price of war for the Kremlin, as its consequences are increasingly felt in the Russian economy.
The total amount of aid is €5.9 billion, of which €4.1 billion has been allocated under ERA Loans — the final tranche of a program financed from the proceeds of frozen Russian assets.
Another €1.8 billion is being transferred to Ukraine under the Ukraine Facility, aimed at supporting reforms and the country's European integration course.
Prime Minister Yulia Svyrydenko noted that these funds are a demonstration of the strategic partnership and trust between Ukraine and the EU.
“This helps us maintain macro-financial stability even in the face of the challenges of war — the largest in Europe since World War II,” she said, noting that this will allow more domestic resources to be directed toward defense.
Von der Leyen also stressed that the EU would support Ukraine during another difficult winter by helping to restore the power grid and strengthen defenses against Russian attacks.
Moreover, the President of the European Commission informed that the EU, together with Belgium, is considering options for long-term support for Ukraine. These include raising funds through capital markets, concluding an intergovernmental agreement under which member states will independently provide financing, and using a reparations loan based on frozen Russian assets.
According to her, this mechanism will allow the proceeds from frozen assets to be directed to Ukraine as a loan, which it will repay only after Russia pays reparations.
“This is the most effective way to support Ukraine's defense and its economy. And the clearest way to make Russia understand that time is not on its side,” she explained.
At the same time, Ukrainian President Volodymyr Zelenskyy called on European Union allies to overcome differences over the use of frozen Russian assets, as new funding is critical to Ukraine's stability.
“I hope, God bless, we will get this decision,” Zelenskyy told Bloomberg. Otherwise, “We will have to find an alternative, it’s a question of our surviving. That’s why we need it very much. And I count on partners.”
Most of the frozen Russian assets are currently held in the Belgian depository Euroclear. Because of this, Belgium refuses to support the use of these assets without clear legal guarantees, as it fears lawsuits from Russia or liability for the return of funds.
As The Gaze reported earlier, due to Belgium's position, EU leaders postponed until December a decision on the use of proceeds from frozen Russian assets for financial assistance to Ukraine. The European Commission is to prepare updated proposals for discussion at the December summit, and a final agreement is planned to be reached by the end of the year.
Read more on The Gaze: Belgium’s Cautious Stance on Russian Assets: Legal Paths to a Reparations Loan for Ukraine Remain Open