The European Union is working on a four-year funding plan for Ukraine worth tens of billions of euros.
The Financial Times writes about it.
According to sources, the European Commission launched a new approach after criticism from allies last year. At that time, Kyivʼs financial support was called "accidental and unpredictable." The commission began working on a proposal that will help meet Ukraineʼs needs not only next year, but also until 2027.
This plan still needs to be refined. His supporters say that he will provide Kyiv with greater financial security. It is also intended to encourage other allies, including the US and Great Britain, to make similar long-term commitments.
If the plan is agreed upon by all EU members, the money will be spent on general budget support for Ukraine. Funds can also be used for reconstruction. The FT notes that getting EU member states to agree on such funding unanimously will be difficult because of Hungary, which has already blocked previous aid to Ukraine.
"Ukraineʼs needs are acute, they need additional guarantees," said one of the officials familiar with the proposal. "It will be a big fight [with member states], but there is still a great desire to help Ukraine," he added.
Proposals for the plan are still being developed, but they could be ready as early as this month, possibly ahead of a conference on the recovery of Ukraine to be held in London on June 21-22.
- In February, the mission of the International Monetary Fund, which assessed the situation in Ukraine and its fulfillment of conditions, ended in Warsaw. Ukraine and the IMF reached an agreement at the staff level to revise the monitoring program.
- In March 2023, the IMFʼs executive board approved a four-year financing package for Ukraine of $15.6 billion to help meet financial needs amid the war. Of these, Ukraine has already received the first tranche — $2.7 billion.