The European Union is reaching out to international partners for increased financial support for Ukraine, which faces the risk of running out of funds as the conflict with Russia enters its fifth year. EU leaders will emphasize the need for enhanced cooperation with third countries to address a funding gap of €30 billion (approximately $34.9 billion) during a summit in Brussels scheduled for the end of this month.
According to reports, the EU had previously agreed to provide Ukraine with €90 billion in loans for this year and the next. This financial package is intended to be funded through joint borrowing, following opposition from several member states against using frozen assets of the Russian central bank as collateral for the loans.
However, the disbursement of this package has been stalled due to disputes among member states. Last month, Hungary vetoed the aid over a disagreement concerning the Druzhba oil pipeline, which transports Russian oil through Ukraine. Kyiv has denied Budapest’s accusations related to this issue.
The ongoing dispute poses a significant challenge for Ukraine and its allies, as Kyiv could find itself without financial resources if the first tranche of the EU package does not arrive by early April. Some countries have suggested sending a fact-finding mission involving Hungarian and Slovak experts to help resolve the conflict.
EU foreign policy chief, Kaja Kallas, stated, “We agreed to provide Ukraine with a loan of €90 billion, and we must fulfill that commitment.” She emphasized that the pipeline dispute should not impede Ukraine’s defense efforts.
Additionally, the EU has called on other nations, including G7 countries, for transitional funding to meet Ukraine’s needs. This topic is set to be discussed at the upcoming finance ministers’ meeting in Washington during the IMF session in April.
Financial challenges are complicating the provision of military equipment to Ukraine, including air defense systems. Sources familiar with the situation indicate that the conflict involving Iran is impacting U.S. weapon supplies and may potentially reduce their availability for Ukraine.
The EU is actively seeking additional financial support for Ukraine as it navigates a significant funding gap amid ongoing conflict with Russia. Disputes among member states, particularly with Hungary, threaten timely disbursement of previously agreed loans.