EU to consider creating €50B Ukraine Fund on Friday

The Economic and Financial Affairs Council (ECOFIN), which is taking place on July 14 in Brussels, will for the first time consider the European Commission's proposals for revising the EU's 2024-2027 multiannual budget, which includes the creation of EUR 50 billion Ukraine Fund.

European Commission Executive Vice-President responsible for an Economy that Works for People, also in charge of Trade Valdis Dombrovskis stated this in Brussels before the ministerial meeting, an Ukrinform correspondent reports.

The ministers intend to discuss for the first time the European Commission's (EC) proposals for revising the EU's multi-annual budget, including the creation of a EUR 50 billion Ukraine Fund, consisting of EUR 17 billion in grants and EUR 33 billion in loans, and covering the period 2024-2027, the EC representative noted. He also hopes that other donors will also contribute to this significant medium-term financial package.

He emphasized that these proposals have now been submitted to European lawmakers for consideration. The EC expects them to be finalized as soon as possible. Such a revision of the EU's multi-annual budget in general, and in particular, the creation of the Ukraine Fund this year, may allow the EC to start funding the relevant programs as early as the start of next year.

Dombrovskis stressed that to receive such funding, Ukraine must present a recovery plan that includes areas for investment and reforms, including those related to Ukraine's integration into the EU. Such funding will have a dual purpose. It will serve to stabilize the macro-financial situation in Ukraine and will also allow financing special projects to rebuild the country.

This year, Ukraine receives funding of EUR 1.5 billion per month. The EC has already disbursed EUR 9 billion to Ukraine. Next year, the Ukrainian Fund will have a dual function, including ensuring macro-financial stability and covering the financing gaps that Ukraine still faces, the EC's Executive Vice-President added.

As reported, since the beginning of Russian invasion, the EU has provided Ukraine with financial assistance of over EUR 70 billion, including a macro-financial budget support package of EUR 18 billion, which will be paid by the end of this year to ensure the functioning of the state in the conditions of war.

According to the President of the European Commission Ursula von der Leyen, the EU has already used up its financial reserves for such financial support for Ukraine, so its continuation requires amendments to the EU's multi-annual budget. The EC has proposed the creation of a EUR 50 billion Ukraine Fund in the EU budget for 2024-2027, the disbursement of which will be conditioned on Ukraine's progress in reforms that bring it closer to EU membership.