Hungary may block large EU financial aid package for Ukraine - FT

The European Union (EU) is preparing a 4-year financial assistance programme for Ukraine. It will amount to tens of billions of euros. However, Hungary may oppose this decision.

The European Commission has already started working on a proposal that will help meet Ukraine's needs until 2027. The Financial Times reports this with reference to European diplomats and officials.

If a decision is made to provide assistance, the money could be used for general state budget support for Ukraine. In particular, the current EU macro-financial assistance package worth €18 billion may be expanded.

In addition, the money could be used to meet Ukraine's immediate needs for restoring the country. In 2023, they are estimated at $14 billion.

Planning for longer-term assistance to Ukraine, which may entail a new issue of EC debt, has emerged against the backdrop of the revision of the EU's multi-annual budget for 2021-2027.

At the same time, Hungary, which has already suspended previous tranches of funding for our country, may oppose the increase in aid.

On 31 May, the United States transferred $1.25 billion in grants to Ukraine's state budget through the World Bank's Multi-Donor Trust Fund. This year, our country has already received $6 billion in direct budget support grants from the United States.

This is stated in the report of the Ministry of Finance of Ukraine. The funds will be used to reimburse budget expenditures:

• payment of state social benefits to families with children
• remuneration of employees of the educational sector;
• remuneration of medical service providers under the medical guarantee programme.

As OBOZREVATEL previously reported, Ukraine has announced a grant programme for small and medium-sized businesses. Women-owned and family businesses (sole proprietorships and legal entities) can receive assistance. Payments range from $10 thousand to $35 thousand (from UAH 365 thousand to UAH 1.2 million).

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