Brussels officially proposes to allocate €18 billion to Ukraine

The European Commission shared the update on its website.

"Following the European Council meeting of 20-21 October 2022, the Commission has today proposed an unprecedented support package for Ukraine of up to €18 billion for 2023. This will come in the form of highly concessional loans, disbursed in regular installments as of 2023.", message says.

Brussels indicates that this stable, regular and predictable financial assistance - 1.5 billion euros per month - will help cover a significant part of Ukraine's short-term financing needs for 2023, which, according to the estimates of Ukrainian authorities and the IMF, amount to 3-4 billion euros per month. Rest of the funds will be provided to Kyiv by other major donors.

"Ukraine will be able to keep on paying wages and pensions and maintain essential public services running, such as hospitals, schools, and housing for relocated people. It will also allow Ukraine to ensure macroeconomic stability, and restore critical infrastructure destroyed by Russia in its war of aggression, such as energy infrastructure, water systems, transport networks, roads and bridges.", the European Commission noted.

Allocation of funds should be accompanied by reforms that will help Ukraine get closer to joining the EU.