The EU wants to increase financial aid for Ukraine, — Politico
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The European Union is currently working on increasing funding for Ukraine for the next years. Its executive bodies, as well as the member states, are ready to agree to the demands of the newly elected US President Donald Trump and take over financing for our country.
This was reported by Politico on Wednesday, December 18.
What is known about the EU aid to Ukraine
The EU is taking such a step in order not to give in to Russian dictator Vladimir Putin. Brussels is currently considering various options for comprehensive financial assistance to Kyiv.
Thus, the offers include:
• a conventional loan at preferential rates and longer repayment terms, but with possible fiscal guarantees from EU member states;
• allocation of money through the European Stability Mechanism. It has a credit limit of 422 billion euros;
• redirection of unused NextGenerationEU funds from the Covid-19 Recovery and Resilience Facility. Only 41% of the €650 billion has been used so far;
• European lend-lease for Ukraine to freely purchase American hardware;
• combining aid for Ukraine with the EU’s own spending on security, defense, and trade.
However, it is worth noting that all of these options are technically and politically complex. They must be supported by the 27 national parliaments of the EU.
As a reminder, Germany has allocated additional €70 million to Ukraine. These funds will be spent on the purchase of small thermal power plants, boiler houses, and other power equipment.
The United States Department of the Treasury has decided to provide Ukraine with $20 billion loan. Funds from frozen Russian assets will be used for this. This is part of the G7 initiative, which involves the allocation of $50 billion in total.
