EU Commission unveils plans to support Ukraine with €90 billion
European Commission President Ursula von der Leyen unveiled on Wednesday details on how the European Union is to support Ukraine with €90 billion ($104.8 billion) over the next two years, including €60 billion to bolster the military.
The funding is a compromise after EU leaders failed in December to agree to use billions of euros in frozen Russian state assets to cover Ukraine’s financing needs for the coming years.
“We all want peace for Ukraine and for that Ukraine must be in a position of strength,” von der Leyen said in Brussels, weeks before the fourth anniversary of Russia’s full-scale invasion of Ukraine.
The loan package is to provide “stable and predictable funding” and “reaffirms Europe’s unwavering commitment to the security, the defence and the future prosperity of Ukraine,” von der Leyen said.
Two-thirds of the funds are earmarked for military support.
Ukraine is required to spend the money on Ukrainian and European-built equipment but can acquire weaponry from abroad if the needed equipment is not available in Europe, von der Leyen said.
“With the military assistance, Ukraine can stand strong against Russia and, at the same time, it can integrate more closely into Europe’s defence industrial base,” she said.
The remaining €30 billion is meant to support Kiev’s budgetary needs but are tied to further reforms in the areas of democracy, rule of law and anti-corruption measures.
The conditions are “to make sure that Ukraine moves forward on its path of accession to the European Union” and are “non-negotiable for any financial support,” the commission president said.
Von der Leyen said she hopes the first disbursement to Kiev can be done as early as April, once the European Parliament and capitals have scrutinized the proposal.
“This package strengthens Ukraine’s defense, safeguards macro-financial stability, and ensures the continued functioning of essential public services amid Russia’s aggression,” said Ukrainian Foreign Minister Andrii Sybiha on X.
Use of immobilized Russian assets not off the table
The loan has no fixed term, EU Economy Commissioner Valdis Dombrovskis said.
Kiev will only have to repay the loan if Ukraine receives reparations from Russia for the destruction caused by the war, Dombrovskis said.
Interest on the loan are to be covered by EU countries with the exemption of Hungary, Slovakia and the Czech Republic, which did not back the loan, he said.
The commission also stressed that the around €210 billion in assets remain frozen and that the EU “reserves its right to use the Russian assets immobilised in the Union to repay the loan, in full accordance with EU and international law.”
