To cover running costs
EU pledges more billions to Ukraine
05/31/2022 01:24 am
The war costs Ukraine billions of euros every month. They are missing, for example to run schools and hospitals or to pay out pensions. The country keeps asking for help. The EU is now making more money available.
The European Union wants to provide Ukraine with further financial aid of up to nine billion euros. This was announced by EU Council President Charles Michel during the meeting of the heads of state and government of the EU states in Brussels. Ukraine should be able to use the money to cover running costs such as pension payments and the operation of hospitals. It is unclear how much money will be paid out as a grant and how much as a loan.
The EU Commission recently announced that it would propose a corresponding measure. At that time, EU Economic Commissioner Valdis Dombrovskis said that the aid should consist primarily of loans and, in part, grants. According to Ukrainian information, the country receives the equivalent of almost 4.7 billion euros a month from the International Monetary Fund (IMF) and the World Bank. These are the costs that the Ukrainian budget needs for social spending as a result of the war.
Broad support for Ukraine aid in US Congress
The IMF assumes that Ukraine needs aid of around five billion dollars a month to ensure the functioning of the government and important state institutions. Ukrainian President Volodymyr Zelenskyj puts the amount to compensate for Ukraine’s economic losses at around 6.5 billion euros a month. In addition, there would be hundreds of billions for reconstruction.
The international community has already provided Ukraine with money on a number of occasions. According to EU information from mid-May, the European Union has already mobilized 4.1 billion euros in support since the beginning of the Russian war. This includes 1.5 billion euros for the financing of weapons and military equipment. Last week, the EU states finally agreed on a further 500 million for this purpose.
A week ago, US President Joe Biden approved a billion-euro US aid package for Ukraine. Before Biden signed the law, the US Congress passed the package with a volume of almost $ 40 billion (38 billion euros) by a large majority. Ukraine has also received assurances of support from other countries.