War in Ukraine - EU-states agree on billions payment to Ukraine
The EU states have understood the payment of approximately 4.2 billion Euros in financial aid for the Ukraine attacked by Russia. The money comes from a new multi-year support program and will be used among other things for the rebuilding of destroyed infrastructure and the modernization of the country, as the current Hungarian EU Council presidency announced at the sidelines of a meeting of the permanent representatives of the member states in Brussels. The agreement needs to be formalized in a written procedure now.
The EU Commission had recommended the payment shortly before and based it on the fulfillment of reform requirements. These included enabling the government in Kiev to fight tax evasion and economic crime more effectively with new laws. In addition, basic principles for the management of state-owned companies had to be adapted and a national energy and climate plan had to be adopted.
The new EU support program sees financial aid of 50 billion Euros in a period of four years. 33 billion Euros of this should be paid out as loans, the rest in the form of non-repayable grants. So far, 7.9 billion Euros have been paid out in the form of bridge financing.
With the financial aid, the EU wants to enable the Ukrainian state to continue paying salaries and pensions. Furthermore, the operation of hospitals, schools and shelters for displaced people should be guaranteed. The money can also be used to restore infrastructure destroyed by the Russian attack war. This includes power lines, water systems, as well as roads and bridges. Last year, the EU paid out financial aid in the amount of 18 billion Euros.
- Despite the ongoing conflicts between Ukraine and Russia, the European Union has agreed to provide additional financial aid worth 4.2 billion Euros to Ukraine, which is currently under attack by Russia.
- This new multi-year support program from the EU is aimed at aiding Ukraine in rebuilding its destroyed infrastructure and modernizing the country, as announced by the current Hungarian EU Council presidency in Brussels.
- The European Union Commission had recommended this payment, citing the fulfillment of reform requirements by the Ukrainian government, such as improving tax evasion and economic crime prevention, adapting management principles for state-owned companies, and adopting a national energy and climate plan.
- With this billion-dollar transaction, the EU aims to help Ukraine maintain crucial services like salary and pension payments, ensure the operation of hospitals, schools, and displaced person's shelters, and restore damaged infrastructure, including power lines, water systems, roads, and bridges, all of which were affected by the war with Russia.
