European Commission President Ursula von der Leyen has introduced a $54.5 billion fund until 2027 for Ukraine.
QUICK FACTS:
- Ursula von der Leyen, President of the European Union’s Commission branch, announced a $54.5 billion package of funding for Ukraine until 2027.
- “We have mobilized every Euro we could for Ukraine itself. The solidarity lanes, the humanitarian needs, the macro-financial assistance, if you put that in a figure direct from the EU budget for Ukraine we allocated so far €30 billion. And of course, this was never foreseen… and this is why we need to revisit our budget now,” von der Leyen said.
- Von der Leyen reported during a press call Tuesday that the spending was “very targeted,” with the EU’s number one priority being Ukraine, and funding border control next.
- The president said the funds will create “predictability, and also incentivize other donors to step up too. This financial reserve will allow us to calibrate our financial support according to the evolution of the situation on the ground, as we all know the war requires utmost flexibility from us.”
- In addition to the $54.5 billion, Ukraine has already received $30 billion to support its defense against Russia.
EU COMMISSION PRESIDENT URSULA VON DER LEYEN ON FUNDING UKRAINIAN “RECONSTRUCTION”:
“Ukraine can count on the EU’s full support. We stand ready to take a leading role in the international reconstruction efforts to help rebuild a democratic and prosperous Ukraine. This means investments will go hand in hand with reforms that will support Ukraine in pursuing its European path,” von der Leyen said.
BACKGROUND:
- Earlier this week, American Faith reported that BlackRock and JPMorgan Chase are preparing to help the Ukrainian government by setting up a “reconstruction bank” that could aid in rebuilding projects heavily invested in by private entities.
- According to The Financial Times, it will cost Ukraine roughly $411 billion to rebuild their country amid the conflict with Russia.
- With the cost increasing, Ukraine reached out to BlackRock in November to see if there was a way of achieving investments and JPMorgan later followed in February.
- Last month, Ukrainian President Volodymyr Zelensky confirmed that he was collaborating with the two financial institutions.
- “So many of today’s long-term challenges are best addressed through blended finance and this is one. You need these vehicles to mobilize capital at scale,” BlackRock vice-chair Philipp Hildebrand said.
- BlackRock has said Ukraine needs a “development finance bank” that would provide the country with infrastructure, climate, and agriculture opportunities.
- Earlier this month, the Biden administration, showing its commitment to Ukraine’s borders and defense, announced a significant new security assistance package worth $2.1 billion for Ukraine.
- Joe Biden was allegedly paid $5 million by an executive of the Ukrainian natural gas firm Burisma Holdings, where his son Hunter Biden sat on the board.
- The Department of Defense (DoD) outlined the comprehensive aid plan, including critical air defense and ammunition capabilities, under the Ukraine Security Assistance Initiative (USAI).
- “This USAI package illustrates the continued commitment to both Ukraine’s critical near-term capabilities as well as the enduring capacity of Ukraine’s Armed Forces to defend its territory and deter Russian aggression over the long term,” the official press release said.
- This aid package is set to go beyond the scope of Presidential Drawdown authority, which has been consistently used to expedite the delivery of equipment to Ukraine from DoD stocks.
