EU Plans Hundred Billions for “Rebuild Ukraine”, but Issues Remain
‘Rebuild Ukraine’ is the new tool for the reconstruction of Ukraine after the end of the war with Russia.
The European Commission announced only the concept of this tool on May 18. It is just a concept because no one still knows the amount of aid and where these funds should be directed.
According to the document, since “Russia’s aggression continues, the overall needs for the reconstruction of Ukraine are not yet known.” The European Commission only estimates that these needs will amount to hundreds of billions of euros, and it may take more than a decade to fully recover.
The EU outlined how it plans to organize assistance to Ukraine and what steps it expects from Kyiv in response.
Hint of EU Membership
Grants, loans, and investments should be the key options for the project ‘Rebuild Ukraine.’
As the European Commission promises, the project “would build on the EU’s experience under the Recovery and Resilience Facility, but adapted to the unprecedented challenges of reconstructing Ukraine and accompanying it on its European path.”
This experience, Brussels hopes, “ensures the transparency, accountability and sound financial management of this initiative, with a clear link to investments and reforms.”
Funds should be allocated by the European Union itself as well “as G7 and G20 partners, and other third countries, as well as international financial institutions and international organizations.”
Meanwhile, the European Commission does not rule out that “frozen Russian assets” (the property of Russian or Belarusian individuals and companies subject to EU sanctions) may be used to finance part of the costs.
As the European Commission predicts, Ukraine should develop the recovery plan itself, but it will be approved by a special body – ‘The Ukraine reconstruction platform.’
