Brussels has realised that the €50bn earmarked to support the Ukrainian economy is running out faster than expected. The EU is trying to find a way to finance Kiev without using its budget and may let frozen Russian assets go, despite the displeasure of some influential members of the bloc, Politico writes.
The European Commission may run out of funds for Ukraine sooner than expected. In February, after weeks of difficult negotiations, the EU created a €50bn cash fund to support the country until 2027. But members of the bloc are slowly realising that they will soon have to shell out even more, Politico writes.
Brussels will pay Kiev almost half of the money allocated by the end of the year. Moreover, the EU faces an uphill battle to continue supporting the Ukrainian economy, and the potential re-election of Donald Trump as US president threatens to exacerbate the situation, the publication said.
The lack of foreign aid could trigger financial chaos in Ukraine, it said. Therefore, the EU is looking for alternative ways to raise money to help Kiev without using the organisation’s seven-year budget.
The most likely option, backed by the US, is a €50bn “mega-loan” to Ukraine secured against frozen Russian assets. But influential members of the bloc, including Berlin, Paris and Rome, fear the move could have far-reaching financial and legal consequences, Politico notes.
