EU falling behind on promise to deliver financial aid to Ukraine

All twenty-seven member states must agree to funding before it can be passed by the European Council.

Jarryd Jaeger Vancouver, BC

In May, the European Union made it known that it planned on granting Ukraine up to €9 billion in further macro-financial assistance by year's end.

Following weeks of deliberating and discussion between the twenty-seven member states, the Council of the EU was only able to agree upon sending €1 billion to the war-torn country.

According to Deutsche Welle, the Council approved the aid in the form of a loan on Tuesday.

While some have lamented that the funding is only one ninth of what was originally proposed, others have called into question whether it is in the EU's best interest long term to lend such a substantial amount of money to Ukraine.

As Bloomberg reports, complicating the matter further is the threat that Russia could inflict a "total cut-off" of gas into the EU, which would undoubtedly have a huge impact on an already struggling economy.

EU economy commissioner Paolo Gentiloni said the risk is "more than just a hypothetical scenario for which we need to prepare," adding that while "a storm is possible," the EU is "not there at the moment."

During talks on Tuesday, a third of the EU's member states warned that if more aid is to be given to Ukraine, plans must be set forth to support smaller economies within the EU to "prevent disaffection toward Kyiv." All twenty-seven must agree to funding before it can be passed by the Council.

Germany, who has already provided Ukraine with an non-refundable €1 billion grant via the IMF, has expressed concern over the form in which the aid will be given, and called into question why they should be "called upon twice."

As Bloomberg reports, a separate €1.5 billion loan from the European Investment Bank is also stalled as the commission seeks to ensure that it can "absorb losses" if Ukraine is unable to pay the money back.

The EU has mobilized over €6 billion for Ukraine since Russia invaded in February.


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