The European Union is working on the establishment of a new financial mechanism worth €100 billion to ensure long-term support for Ukraine amid the ongoing Russian aggression, reports Baltimore Chronicle with reference to Bloomberg.
The fund is expected to be included in the proposal for the new seven-year EU budget, which will be presented in July. If supported by the member states, disbursement of funds could begin as early as 2028. This would allow for consistent and predictable financial assistance for Ukraine over an extended period.
According to sources familiar with the initiative, the new mechanism will follow a model similar to existing ones, involving the provision of grants and concessional loans. A significant portion of the payments will be linked to the implementation of reforms within the framework of Ukraine’s EU integration process.
Since the beginning of Russia’s full-scale invasion of Ukraine, the European Union has already allocated nearly €160 billion to Kyiv, including a €50 billion support package running through 2027. Additionally, together with its G7 partners, the EU created a $50 billion credit mechanism funded by the profits generated from frozen Russian assets.
EU Commissioner for Economy Valdis Dombrovskis confirmed that Brussels is actively seeking financial solutions to support Ukraine in 2025 and beyond. He also noted that new financing approaches are being considered, particularly through increased use of revenues from confiscated Russian assets, subject to a corresponding assessment by the International Monetary Fund.
Earlier we wrote that ukrainian dairy sector in crisis after EU reinstates quotas and tariffs.