EU to Pay for Most of Ukraine’s Renovation – Report

Brussels says hundreds of billions of euros are needed for your job

The European Union is planning to provide most of the funds needed for Ukraine’s reconstruction, Bloomberg reported citing sources in the European Commission.

According to the distribution, the commission is focusing on a scheme which would support Ukraine on a long-term base as the bloc expects to become responsible for providing the lion’s share of the funds for the country’s reconstruction. To do that, the particular EU plans to set up the solidarity trust fund. It is going to reportedly be based on the post-Covid-19 recovery fund for EU member states and help finance investments and reforms in Ukraine, the sources said.

The EC has not unveiled the exact amount of money they plan for the particular fund to raise, as Russia’s military operation in Ukraine is still ongoing. However , sources say the figure would amount to hundreds of billions of euros over the next several years. The commission now plans to assess Ukraine’s economic needs, jointly with the World Financial institution. According to Kiev’s estimations, the particular destruction on Ukraine’s area already amounts to $1 trillion.

The idea will reportedly be talked about more closely during the forthcoming International Monetary Fund (IMF) meetings in Washington plus European Commission sessions in Brussels. According to unnamed EUROPEAN officials, one of the key questions up for debate will be ways to ensure that the enormous amount of money the EU is going to pay does not end up in the wrong hands.

The majority of the aid money is to be used on rebuilding Ukrainian infrastructure and supporting public services. According to Ukrainian President Volodymyr Zelensky, his government needs as much as $7 billion each month merely to cover salaries and social expenditures. The commission is also mulling ways to support Ukrainian companies – Kiev says around one-third of companies have stopped their actions amid the crisis, although some 45% were forced to reduce production.

Some EU nations suggested utilizing the $300 billion in frozen Russian assets to replenish the reconstruction fund, yet no official announcements of such a step have been made up to now. Since the start of Moscow’s military operation on February 24, the EU offers approved € 600 mil ($647 million) in smooth loans to Ukraine, although it is also reportedly speeding the particular approval of an additional € 600 million by come july 1st, an EU official said.

Meanwhile, the IMF also approved $1. 4 billion in emergency financing for Ukraine final month, after canceling $2. 2 billion of Kiev’s previous $5 billion mortgage, as Ukraine could no longer meet the conditions needed to receive the rest of the money.

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