Tensions are rising between the United States and its allies in the EU over Ukraineʼs economic situation — American officials are calling on the European Union to increase financial aid to Ukrainians.
The Washington Post writes about it.
During meetings in Washington, US Treasury Secretary Janet L. Yellen urged her international colleagues to finance Ukraine faster and in larger volumes. President of Ukraine Volodymyr Zelensky and Prime Minister Denys Shmyhal joined this call.
The US Treasury Secretary raised the issue during a private meeting this week at the International Monetary Fund with European Commission Executive Vice President Valdis Dombrovskis, as well as at a meeting with all EU members.
On October 12, President Zelensky said that the state budget of Ukraine alone needs $38 billion in emergency economic aid from the West. This figure does not include an additional $350 billion, which the World Bank estimates will be needed for the long-term reconstruction of Ukraine after the war.
The United States allocated $8.5 billion in economic aid to Ukraine. Another $4.5 billion will be spent by the end of the year. US officials say the European Union has pledged €11 billion but has only given out about €3 billion in loans.
"We call on our partners and allies to join us in quickly repaying their obligations to Ukraine and stepping up efforts — both to help Ukraine continue to provide essential public services and to help Ukraine begin to rebuild and rebuild," Janet said. Ellen.
European Commission spokeswoman Nuits Wehrle denied the delay in payments to Ukraine. According to her, the total amount of obligations — not only of the EU, but also of member states and financial institutions such as the European Investment Bank — is approximately €19 billion.
She added that the European Commission also undertakes to allocate €10.2 billion in emergency economic support to Ukraine by the end of the year. Although the vast majority of aid is provided in the form of loans rather than grants, these loans are provided on very favorable terms for borrowers, according to Wehrle.
Harvard University economist and former chief economist of the International Monetary Fund, Kenneth Rogoff, is concerned that inflation in Ukraine will continue to rise rapidly if additional aid does not arrive.
“They are in a desperate, desperate situation that you cannot even imagine... In a sense, while they are winning the war, their economy is losing... The Europeans have to pay a lot more. I donʼt care if theyʼre in a recession. Ukraine is in a war where it is defending the border of Europe," he said.
- On October 13, Ukraine received $1.3 billion in additional emergency financing from the International Monetary Fund.
- The European Commission is considering the possibility of providing Ukraine with about €1.5 billion in budget support every month in 2023.
- On October 4, it was reported that Ukraine will receive $529.9 million in additional financing from the World Bank for urgent needs.