Brussels plans to create the largest financial aid package in the history of the Union
The European Union is developing a large-scale financial mechanism to support Ukraine, which could reach 130 billion euros. This will be the largest loan the EU has ever provided to any country in its history.
What we know
According to European media, the funds are planned to be provided in the form of long-term concessional loan. They have to cover:
Ukraine's wartime budget deficit;
infrastructure restoration costs;
support for social programmes and basic services.
The financing is designed for several years and is closely linked to IMF programmes, as well as the possible use of profits from frozen Russian assets.
Details of the mechanism
The loan is negotiated as EU joint debt instrument, similar to that used during the COVID-19 pandemic.
It is expected that Ukraine will make payments over decades, with the EU budget covering part of the interest.
A final decision is expected after consultations between the member states and the European Commission.
Reaction.
Brussels emphasises that this is a step aimed at the long-term stability of Ukraine.
Hungary and a few other countries may raise objections, but most member states support the idea, understanding Ukraine's strategic importance.
Kyiv welcomes the initiative, as it is not only about financing current needs, but also about guarantees of recovery after the war.
Context.
Previously, the EU provided €50 billion in aid packages to Ukraine, but the new €130 billion plan actually doubles the scale of support. Analysts note that this decision will test the unity of the European Union and its readiness to take responsibility for Ukraine's future.
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