EU’s Financial Assistance to Ukraine Amid Rising Tensions with Russia

European Union has announced financial assistance package to Ukraine. Package will consist of emergency loans as well as grants. EU has proposed EUR 1.2 billion Emergency Macro-Financial Assistance Package (MFA) for Ukraine which will support Ukraine in addressing its financial needs arising due to the conflict. The proposed Emergency MFA package of EUR 1.2 billion will have to be adopted by Council and the European Parliament before the funds can be disbursed. Post adoption the first tranche of EUR 600 million will be disbursed to Ukraine. Post disbursal EU will start working on the second tranche of MFA, which will be aimed at supporting Ukraine’s modernisation efforts.

President von der Leyen has said that the Commission will provide bilateral assistance to Ukraine which will be in the nature of Grant. Under the grant, EUR 120 million will be allocated to Ukraine for supporting as will as strengthening state-building and resilience efforts. EU will stand by Ukraine and will continue to invest in its future by investing over EUR 6 billion

For assessing the Ukrainian situation President von der Leyen has spoken to President Zelenskyy.

According to President von der Leyen, EU firmly resolve to stands by Ukraine will support Ukraine in immediate as well medium term. It has to be noted that EU has been supporting Ukraine and have allocated over EUR 17 billion in grants and loans since 2014.

Earlier whilst delivering special address on the theme of ‘State of the World’ at World Economic Forum, President von der Leyen mentioned the need of trust in the international arena with reference to Russia.  Europe does not believe in old logic of competition and spheres of influence but diplomacy. EU and Russia need to engage in dialogue and EU will not accept Russian attempts for creating division within Europe. European security will remain valid in the Helsinki Final Act and the Paris Charter, which have been signed by Russia. EU reaffirm solidarity with Ukraine as well as other European partners being threatened by Russia. However, on the event of attack on territorial integrity of Ukraine, Russia will be responded with massive economic as well as financial sanctions. Despite the fact that EU is Russia’s biggest trading partner as well as the largest investor.  She said that EU wants a common future with Russia but Kremlin policies are dangerous and lacks trust.

NATO Secretary General Jens Stoltenberg has met with Minister for Foreign Affairs of Finland, Pekka Haavisto and the Minister for Foreign Affairs of Sweden, Ann Linde. Meeting discussed the issue of European Security, NATO Russia relations and Russia’s continued military build-up in and around Ukraine. United States has put its carrier strike group under NATO command for the first time in decades. NATO allies are stepping in. Denmark, France, Netherlands, Spain, France are all stepping up their forces under joint command of NATO. According to various reports and estimates more than 1,00,000 troops are stationed at border between Ukraine and Russia.

Bureau Galactik Views

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