EU to close almost all of Ukraine's budget deficit in 2025 – Von der Leyen
The European Union is set to allocate over €30 billion to Ukraine in 2025, which will almost completely cover the country's budget deficit.
Source: Ursula von der Leyen, President of the European Commission, at a press conference after an EU summit in Brussels, as reported by European Pravda
Details: Von der Leyen stated that in 2025, Ukraine would receive funds through the EU's Ukraine Facility and a joint initiative with the G7 to utilise extraordinary proceeds from frozen Russian assets for Ukraine's benefit.
"We know that 2025 is going to be a decisive year... we have to put Ukraine in a position of strength. Looking back, Europe has so far provided Ukraine with almost €130 billion. We have secured economic and financial stability until the end of 2025. That is good news. And with the Ukraine Facility and our G7 loan, we are even covering most of Ukraine's financing gap for 2025. This is a major achievement," she said.
Von der Leyen said this "also allows Ukraine to have more fiscal space to purchase the much-needed military equipment".
The Ukraine Facility provides up to €50 billion in grants and loans to aid Ukraine's recovery, rebuilding and modernisation efforts from 2024 to 2027.
Background: In late October 2024, the G7 finalised the terms of a US$50 billion loan to Ukraine initially agreed upon during a June summit in Italy. On 28 November, the EU and Ukraine signed a memorandum of understanding for €18.1 billion in macro-financial assistance, funded by proceeds from frozen Russian assets.
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