The European Union is discussing a new loan package for Ukraine, which could cover approximately two-thirds of the country's expected financing deficit in 2027. This is a shortfall of about 70 billion euros, Ukrinform reports, citing informed sources in the European institutions in Brussels.
The final amount of the European contribution has not yet been determined. According to the agency, the target is about two-thirds of the total amount, or approximately 47 billion euros, while diplomatic efforts to include partners outside the EU will continue in parallel.
Frozen Russian assets remain a controversial option
The new European loan is seen as a more practical option given the low probability of using frozen Russian assets for the benefit of Ukraine. The reasons are the opposition of Belgium and the lack of agreement between member states on the distribution of financial and legal risks.
Among the countries and institutions that the EU will seek support are the G7 countries, Switzerland, Norway, Australia, New Zealand and international financial institutions. According to Ukrinform, the European Union does not rely on the participation of the United States in the relevant funding programs.
Possible use of funds from existing programs
Part of Ukraine's defense spending can be covered by funds from existing European programs. The use of the remaining SAFE credit resources, which according to preliminary estimates exceed 20 billion euros, as well as more than 6.5 billion euros from the European Peace Fund, is being discussed.
“The financing scheme must be formulated by the special meeting of the European Council scheduled for November 26-27“, one of Ukrinform's interlocutors said.At the meeting, the leaders of the member states must make a political decision on how Ukraine will be financed in 2027. After that, legislative work on the implementation of the chosen mechanism is expected to begin.
Ukrainian President Volodymyr Zelensky called on European partners to provide at least 70 billion euros for the country's defense and to strengthen its air defense. Meanwhile, British Foreign Secretary Ed Miliband urged EU countries to use €210 billion in frozen Russian assets to finance Ukraine.
Sources: ukrinform.ua