EU leaders on Friday introduced a multi-billion dollar funding plan for Ukraine’s financial system and navy for the subsequent two years – with the bundle funded for now by borrowing money and never tapping into billions of {dollars} of frozen Russian property held within the bloc.
Due partially to the United States chopping funding, Ukraine can have a funding hole of $160 billion (€137 billion) over the subsequent two years, based on forecasts by the International Monetary Fund. The EU was searching for to satisfy two-thirds of that, or some about $105 billion (€90 billion).
EU leaders have been debating whether to use frozen Russian assets to finance extra help for Ukraine, throughout a vital summit which started Thursday. Such potential use of the property is steeped in controversy — critics argue it’s legally questionable and dangers retaliation by Moscow.
Following the announcement, Ukrainian President Volodymyr Zelensky stated he’s “grateful” to EU leaders for agreeing to supply the help.
“This is significant support that truly strengthens our resilience,” Zelensky wrote Friday in a submit on X.
“It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years.”
Earlier Friday, the top of the European Union Council stated the bloc had authorised the Ukraine financing deal, saying “we committed, we delivered.”
Meanwhile, Russia’s prime financial envoy on Friday welcomed the European Union’s determination to not use frozen Russian property to fund a mortgage to Ukraine.
“Voices of reason in the EU BLOCKED the ILLEGAL use of Russian reserves to fund Ukraine,” Kirill Dmitriev wrote in a submit on X.