EU: The 27 will agree at the end of May on the creation of a fund for the reconstruction of Ukraine

BRUSSELS (Reuters) – European Union heads of state and government are expected to agree at a summit on May 30 on a fund for Ukraine’s post-war reconstruction, but its mode of Funding remains vague, according to draft findings seen by Reuters on Friday.

The European Commission on Wednesday proposed the creation of a mechanism dubbed “RebuildUkraine” that would work through grants and loans, of an unspecified amount, modeled on the EU’s post-COVID-19 recovery fund. .

“A platform for the reconstruction of Ukraine should be set up, bringing together the Ukrainian government, member states, the European Union as well as partners, institutions and funding organizations,” the project says.

“The platform will be supported by a new EU solidarity instrument combining EU and member state contributions,” according to the document, which does not specify whether the mechanism should include new joint EU borrowing.

Germany opposes an increase in the common debt of the 27.

Economists’ estimates of the cost of rebuilding Ukraine vary between 500 and 2 trillion euros, depending on assumptions about the duration of the conflict and the extent of the destruction.

Faced with such a stake, the EU plans to use the frozen assets of the Russian oligarchs to finance reconstruction, a measure that the heads of state and government will support, according to the project.

“The European Council welcomes efforts to provide for appropriate confiscation measures, including exploring options to use frozen Russian assets to support the reconstruction of Ukraine,” the document reads.

“In this context, he calls on the Council (of Ministers) to act quickly on the Commission’s recent proposal on criminal law measures in the event of breaches of EU sanctions,” he said, although the sentence is in parentheses, which means it could still be changed.

(Report Jan Strupczewski, French version Diana Mandiá)

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