EU considers new €100 billion support fund for Ukraine

The European Union (EU) is reportedly considering the creation of a special €100 billion ($117 billion) support fund for Ukraine due to the ongoing war, which “shows no signs of ending.”

According to a report by Bloomberg, citing sources familiar with the matter, the fund is intended to be part of the EU’s next seven-year budget. If approved by member states, payments would begin in 2028 and continue until 2034. Discussions on the budget and related proposals are expected at the end of July, with the draft of the seven-year financial plan scheduled for release on July 16.

Existing aid totals €160 billion

Since the start of the war, the EU has provided approximately €160 billion ($187 billion) in aid to Ukraine. This amount includes a €50 billion fund providing grants and loans to Kyiv through 2027. This year, EU countries have pledged €23 billion in military aid to Ukraine and have also allocated a €30 billion loan secured by Russia’s frozen assets.

Concerns over Ukraine’s budget deficit

According to the Financial Times (FT), the EU is seeking ways to cover Ukraine’s budget deficit, which is projected to be between $8 billion and $19 billion in 2026. EU Commissioner for Economy Valdis Dombrovskis stated that the bloc is ready “to provide all necessary support to Ukraine for as long as it takes.”

Dombrovskis added that the European Commission will explore options to increase aid “using the EU budget and revenues from Russia’s sovereign assets,” but noted that the International Monetary Fund must first assess the potential deficit.

The burden shifts to Europe

Bloomberg interprets the EU’s move to increase its military and financial support as a reaction to the shifting stance of the US, particularly with the potential for a Donald Trump presidency. The agency emphasizes that establishing the €100 billion fund would “shift the burden of support for Ukraine even more onto Europe.”

European officials speaking to the FT noted that many in Brussels had expected a ceasefire agreement between Russia and Ukraine this year, which could have eased Kyiv’s budget problems. However, the lack of progress in peace talks has forced the European Commission to reorganize spending within its current financing plans for Ukraine.