Connect with us

Hi, what are you looking for?

Europe

EU capitals approve €1B in aid to Ukraine

EU finance ministers Tuesday approved a European Commission proposal for €1 billion in macro financial assistance to Ukraine, to be provided as a long-term concessional loan.

The amount will be backed by an EU budget guarantee, and the EU budget will subsidize interest payments. The aid is part of an international effort to plug Ukraine’s budget deficit and avert a financial crisis in the war-torn country.

“This will give Ukraine the necessary funds to cover urgent needs and ensure the operation of critical infrastructure,” said Czech Finance Minister Zbyněk Stanjura. Prague is holding the rotating presidency of the Council of the EU.

But a broader aid package of up to €9 billion backed by EU countries’ guarantees, proposed by the Commission in May and endorsed by EU leaders, failed to gather the support of Germany. Berlin argues that loans add to Ukraine’s debt sustainability issues and advocates instead for grants. It has provided a €1 billion grant to Kyiv.

After months of haggling, the Commission went ahead with a smaller amount to raise and disburse funds in July, after agreeing with Ukraine on conditions including “enhanced transparency and reporting on the use of funds.”

Discussions on further assistance and broader plans on financing Ukraine’s reconstruction continue, and the Commission will likely present proposals after the summer break, said an EU diplomat.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Energy

Germany should allow the blocked Nord Stream 2 pipeline to begin pumping Russian natural gas so “people do not have to freeze in winter...

Europe

The United States will donate eight Bell helicopters to the Czech Republic, Prague’s Defense Minister Jana Černochová said. Speaking to Czech TV on Thursday...

Europe

Russian President Vladimir Putin and his Chinese counterpart Xi Jinping are both planning to attend the G20 summit in Bali in November this year, Indonesian...

Energy

Press play to listen to this article European farmers are reckoning with the prospect of a future where parched pastures and shriveled fruits are...

Europe

Gabrielius Landsbergis is the minister of foreign affairs of Lithuania. Even before the surge of those fleeing after Belarus’ rigged 2020 election, Lithuania had...

Energy

Press play to listen to this article Bavarian Premier Markus Söder and his predecessors spent years battling wind energy projects and high-voltage power lines...

Technology

Russian patriotic hackers hit Estonia’s public institutions and private companies with a cyberattack Wednesday following the country’s removal of a Soviet tank monument and...

Europe

Press play to listen to this article BERLIN — What did Olaf Scholz know, and when did he know it? The answers could well...