Financial assistance

EU offers additional €9 billion in financial aid for war-torn Ukraine in 2022

As the war continues to escalate in Eastern Europe and entered the 84th day, the European Union (EU) on Wednesday offered additional macro-financial assistance of 9 billion euros ($9.5 billion ) to war-torn Ukraine in 2022. European Council President Ursula von der Leyen stressed that this bloc will continue to stand with Ukraine throughout this war and will begin to rebuild. She said that the EU has a responsibility and a strategic interest in leading Ukraine’s reconstruction efforts, and she suggested that a reconstruction platform be established for this purpose.

Von der Leyen went on to say that Ukraine and the EU’s executive body would lead the platform, which would coordinate the actions of EU members, other nations, international donors and international financial institutions. According to her, the rehabilitation of Ukraine should include both investments and reforms in areas such as “the fight against corruption, administrative capacity, the rule of law and judicial independence”. These investments will help Ukraine emerge stronger and more resilient from the devastation caused by the military,” she added.

EU Member States Increase Defense Spending: Von der Leyen

The President of the European Commission claimed that member states were increasing their defense spending. She suggested that this money be spent in a coordinated way and fill the capability gaps identified by the EU and the North Atlantic Treaty Organization (NATO). “We will set up a working group with Member States to coordinate immediate replenishment and supply needs. It will be accompanied by a financial instrument to encourage joint purchasing. And then in the fall, we will propose a regulation to ensure that joint procurement is fully exempt from VAT,” she noted.

EU to provide additional €500 million in military aid to Ukraine

It is worth mentioning here that the EU has also pledged to provide an additional €500 million (over Rs 4,021 crore) in military assistance to war-torn Ukraine. Speaking to reporters on May 13, the EU’s High Representative for Foreign Affairs and Security Policy, Josep Borrell, said: “We will provide another tranche of another 500 million to support the Ukrainian army”, said the Associated Press (AP) reported. He added that the funds would be used to purchase heavy weapons, bringing total EU financial support to Ukraine to 2 billion euros ($2.1 billion).

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