The European Union will pay $ 9.5 billion to keep Ukraine afloat, as Washington has said.
European Commission President Ursula von der Leyen on Wednesday proposed a 9 billion euro (.5 9.5 billion) aid package to keep the Ukrainian government afloat and said the EU would lead restructuring efforts in Ukraine once hostilities cease. The announcement comes a day after the United States called on Europe to open its coffers for Kiev.
Funding for the aid package will be borrowed by the World Financial Markets Commission and repaid by Kyiv. According to EU rules on macroeconomic assistance, the Ukrainian government may use cash if it deems fit.
Ukrainian President Volodymyr Zelensky has claimed that Ukraine needs about 7 7 billion a month to pay its soldiers, civilians and pensioners, and to provide the necessary services. The proposed EU package would therefore work for Ukraine for more than a month.
Hours before Von der Lane’s announcement, US Treasury Secretary Janet Yellen told the Brussels Economic Forum that “The bilateral and multilateral assistance announced so far will not be enough to meet Ukraine’s needs, even in the short term.”
“I sincerely urge all our partners to join us in increasing their financial support in Ukraine,” He went on to say that in addition to keeping the country afloat in the short term, “Massive Support” Once the war is over, Ukraine will need to be rebuilt.
Von der Lane said on Wednesday that the EU would lead the restructuring effort, but would not be the sole contributor.
“We therefore propose a restructuring platform jointly led by Ukraine and the Commission as part of this plan and to bring together EU member states, other bilateral or international donors, international financial institutions and other like-minded partners.” He said.
Although Von der Leyen’s aid package is in line with Yellen’s request, it must be approved by both the European Parliament and the European Council. So far, however, the Commission’s assistance package for Ukraine – including four consecutive € 500 million ($ 520 million) military aid packages and a € 1.2 billion ($ 1.26 billion) emergency loan package – has met with no resistance from either side.
Russian President Vladimir Putin has accused EU leaders of working for them “American lord” Concerning Ukraine, and the promise economic “Suicide” Inflation and record high energy costs alienate Russian energy resources.