EU Council approves €18 billion assistance to Ukraine

The Council of the European Union reached an agreement Saturday on a legislative package that will enable the EU to help Ukraine financially throughout 2023 with €18 billion, according to a press release.

The proposal will be submitted to the European Parliament for possible adoption next week.

The package aims at providing short-term financial relief to war-torn Ukraine, namely financing its immediate needs, rehabilitation of critical infrastructure and initial support towards sustainable post-war reconstruction, also with a view to supporting Ukraine on its path towards European integration.

“Ukraine can count on the EU. We will continue to support Ukraine, also financially, for as long as it takes. The legislation which we adopted today means that Ukraine can count on regular financial help from the EU throughout 2023,” said Zbyněk Stanjura, the finance minister of Czechia, which presides at the Council until the end of 2022.

The package provides for a structural solution to support Ukraine in 2023 financially. The loans totaling €18 billion will have a 10-year grace period. EU member states will cover the bulk of the interest costs via external assigned revenues. The guarantees for that borrowing will be provided by the EU budget if supported unanimously or otherwise by individual member states.

This package of assistance to Ukraine was approved despite Hungary’s dissenting vote. The European Commission’s original proposal, which would require a unanimous backing of the EU’s 27 member states, had been blocked by Hungary.