EU Proposes Up to $9.5 Billion in Funding for Ukraine for 2022
European Commission President Ursula von der Leyen spoke about Ukraine in Brussels on Wednesday.JOHN THYS/AGENCE FRANCE-PRESSE/GETTY IMAGESThe European Union’s executive agency proposed to provide up to 9 billion euros, equivalent to $9.5 billion, to help Ukraine pay its bills through the rest of 2022, European Commission President Ursula von der Leyen said Wednesday. The proposal follows U.S. plans to provide $8.5 billion in immediate short-term aid.
Wednesday's proposal will need to be approved by EU member states and the European Parliament. The International Monetary Fund has estimated Ukraine needs around $5 billion a month in assistance to keep the country running.
Ukraine’s government expects the economy to contract by around 45% this year.
The EU money would likely come through a long-term, low-interest loan. The EU will also issue some grants to Ukraine subsidizing the interest rates, European Trade Commissioner Valdis Dombrovskis said Wednesday.
As well as taking several million Ukrainians into the bloc and providing up to 2 billion euros in military assistance, the EU has given humanitarian assistance to people arriving in the bloc and to people who stayed home, spending 4.1 billion euros in total since the war began.
Correction: The IMF has estimated Ukraine needs around $5 billion a month in assistance to keep the country running. An earlier version of this post incorrectly stated that the IMF had agreed to a $5 billion loan for Ukraine.
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