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EU aims for 8 bln euro Ukraine aid package by September

Newsdeck

Ukraine war

EU aims for 8 bln euro Ukraine aid package by September

A Serviceman of a Ukrainian National Guard unit takes part in training at their position in the Kharkiv area, Ukraine, 03 August 2022. EPA-EFE/SERGEY KOZLOV
By Reuters
04 Aug 2022 0

BERLIN, Aug 4 (Reuters) - The European Union intends to put together another financing package for Ukraine by September that will amount to about 8 billion euros ($8.15 billion), a German government source said.

Part of the package would be made up of grants that do not have to be repaid while another part will consist of loans, a government official told journalists on Thursday.

In May, the Group of Seven’s financial leaders agreed on $9.5 billion in new aid to Ukraine, mainly from the United States. Germany had contributed 1 billion euros in the May package, which it has already paid.

Germany will also contribute to the new aid package, the source said, adding that other EU countries such as Italy and France have held back so far and that Berlin is in close contact with its European partners and the European Commission on the issue.

The envisaged aid should support the Ukrainian government’s budget, while military, humanitarian and reconstruction aid would be financed from other sources, the source added.

Earlier this week, Ukrainian President Volodymyr Zelenskiy said the government budget deficit was running at $5 billion a month. 

(Reporting by Christian Kraemer, Writing by Riham Alkousaa and Miranda Murray)

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