The EU is providing Ukraine with $54 billion. How will the money be spent?
ABC News
EU leaders on Thursday sealed a deal to provide Ukraine with 50 billion euros ($54 million) to shore up its economy ravaged by a nearly two-year-old war with Russia, The aid package, which was approved after Hungary dropped weeks of threats to veto it ...
EU leaders on Thursday sealed a deal to provide Ukraine with 50 billion euros ($54 million) to shore up its war-ravaged economy after Hungary dropped weeks of threats to veto the measure.
The aid package — about two-thirds loans and one-third grants to be paid out over a four-year period — is not intended to fund arms and ammunition, which fall under a separate EU plan. Instead, it aims to stabilize Ukraine’s economy after nearly two years of fighting, pay for rebuilding, and set the country up for future EU membership.
The package will help Kyiv plug budget gaps while avoiding the skyrocketing inflation seen in the first months after Russia’s full-scale invasion in February 2022. Ukraine lost a third of its economic output to wartime destruction and occupation by Moscow, which took over the main heavy industry hubs in the east.
The central bank had to print money to cover state expenses and inflation shot up, reaching a high of 26%. The economy rebounded somewhat last year, but Kyiv spends almost all of its tax revenue on the war.
As of Saturday, neither President Volodymyr Zelenskyy’s office nor the Ukrainian finance ministry have disclosed details of how the funds will be spent. However, statements by EU authorities, Ukrainian lawmakers and diplomats have identified key areas of concern:
