Estonia proposed a €120 billion financing plan for Ukraine

Sofiia Telishevska

Estonia, which advocates the seizure of frozen Russian assets, has proposed a €120 billion financing plan for Ukraine. Borrowing from financial markets or taking from national budgets is the best way to achieve this goal, according to the Permanent Secretary of the Ministry of Defense of Estonia Kusti Salm, Erucativ reports.

"Allocating €120 billion a year to military aid to Ukraine is a ballpark figure for what should be enough for Ukraine to win the war," he noted.

Salm suggested that part of this amount can be allocated from Eurobonds, and the European Commission can attract funds from financial markets — in this case, EU member states would act as guarantors.

In recent months, Estonian politicians have said that Ukraineʼs western allies need to invest 0.25% of GDP in military aid, following a strategy developed by Estoniaʼs defense ministry.

"If the 50-plus countries in the US-led ʼRamstein’ coalition supporting Ukraine militarily spent that percentage, it would amount to “more than €120 billion a year. With this money, by 2025, Ukraine will get to a point where they can impose attrition to Russia," noted the permanent secretary of the Ministry of Defense of Estonia.

Salm emphasized: even if that amount of money started flowing now into the budgets, its impact would take almost a year.

"It will take another [around nine months] to get the supplies to the level needed for Ukraine to credibly get to this attrition level," he said.

  • On March 8, it became known that Estonia wants to sign a security agreement with Ukraine and next week will approve another package of military aid.