EU prepares 100bn euro fund for long-term support for Ukraine - Bloomberg

The European Union is planning to create a new 100bn-euro fund to provide sustainable assistance to Ukraine, as the EU sees no signs that the war will end soon, Bloomberg has reported.

According to the agency, the fund could be included in the next seven-year EU budget to be presented in July. If the timing is approved, the member states will start allocating funds from 2028, creating a reliable platform to support Ukraine.

As a reminder: since Russia's massive invasion, the EU has already channelled almost €160bn to Ukraine, including a package of €50bn in grants and loans until 2027. Also, the EU, together with the G7, established a $50bn loan facility financed by frozen Russian assets.

The format of the new fund will be similar to the previous ones - part of the funds will be allocated in the form of grants, part - cheap loans. Disbursements will depend on the pace of reforms needed to prepare Ukraine for EU integration," the newspaper said.

The initiative is scheduled to be discussed by 16 July, before the release of the EU's Multiannual Financial Programme. Economic Commissioner Valdis Dombrovskis said that the authorities were considering various financing options, including using the proceeds from frozen Russian assets.

The bloc is ready to support Ukraine as long as necessary," Dombrovskis emphasised.

What next?

• The final approval of the fund is after the EU has discussed and agreed on it.

• Funding will start in 2028, when the budget is adopted.

• The fund will provide long-term support: to help reform, rebuild and integrate Ukraine into the EU.