European Parliament backs €50 bln financial assistance fund for Ukraine

Members of the European Parliament overwhelmingly supported the proposals of the EU Commission to create a Ukraine Facility.

The Ukrinform correspondent reports that MEPs voted for the new initiative in the first reading on Tuesday in Strasbourg, France, at the planning meeting, with 515 people in favor and 45 against the new assistance fund.

The Ukraine Facility should include €50 billion of financial assistance to Ukraine in the next four years "to support Ukraine's recovery, reconstruction, and modernization from 2024."

"The European Parliament is taking decisive action with the Ukraine Facility, directing €50 billion towards profound societal transformation," Michael Gahler, co-rapporteur for the Committee on Foreign Affairs, said. "We are increasing the accountability of the Facility, ensuring it not only fosters resilience and prosperity but does so with unparalleled transparency. As Ukraine embarks on this critical journey, our collective vigilance will safeguard the integrity of it every step towards European integration."

What we know about Ukraine Facility

In June, the Commission proposed to set up a dedicated "Ukraine Facility" with up to €50 billion through grants, soft loans, and guarantees. The package aims to combine aid used to pay wages, pensions, and some public services and spending on rebuilding basic infrastructure. The proposal, which is part of the EU's long-term budget review, will cover the period from 2024 to 2027.

The World Bank has estimated that the cost of rebuilding Ukraine may amount to $411 billion.

In September last year, Prime Minister Denys Shmyhal said that $349 billion was needed to rebuild Ukraine due to Russia's war against Ukraine. He said that the amount was not final because hostilities and missile attacks by Russia continued.