According to the publication, the EC is forced to prepare a new project of financial assistance to Ukraine due to Germany's refusal to act as a guarantor of the previously agreed tranche of €9 billion
The European Commission (EC) has prepared a new project of financial assistance to Ukraine for €8 billion to replace the one previously blocked by Germany. It will be transferred to Kyiv in the form of grants and loans, writes Politico, citing several sources close to the discussion.
According to the publication, the EU plans to provide Ukraine with up to €5 billion in long-term loans guaranteed by European countries, in accordance with their contribution to the EU budget. Interest payments will be subsidized from the EU budget. Remaining amount— about €4 billion— will be provided in the form of grants, the interlocutors of the publication specified.
Politico writes that the need to agree on a new financial assistance project arose after Germany's refusal to provide Ukraine with guarantees for previously promised loans for €9 billion.
At the end of June, the EU countries approved the provision of additional financial assistance to Ukraine for €9 billion. Brussels was going to transfer the funds this year. However, Ukrainian Finance Minister Serhiy Marchenko later said that some states “are not ready to support Ukraine with such an amount.” “The European Union agreed on financial assistance to Ukraine in the amount of €9 billion, but what do we see at the moment? Maybe a billion this month. Then there may be a pause: there is no agreement between the EU governments,— he said.
Corriere della Sera, citing sources, wrote that Germany was blocking the provision of a €9 billion aid package to Ukraine. It provides for almost interest-free loans to Kyiv with repayment in 25 years at the expense of its own European debt obligations. Germany is also the largest guarantor of these Eurobonds. German Finance Minister Christian Lindner is unhappy that Brussels is resorting to a pan-European debt for the sake of Kyiv, and agreed only with the allocation of the first tranche of €1 billion, the publication reported.
President of Ukraine Volodymyr Zelensky on the eve reproached the EU for “artificial delay” with economic help. «€8 billion for Ukraine are still slowed down. And such an artificial delay in macro-financial assistance for our state is either a crime or a mistake. And it's hard to say which of these is worse,»,— said the head of state. He did not specify which European country is delaying the provision of assistance to Kyiv, noting that he believes, “this is still a mistake that will be corrected.”
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