Von der Leyen to propose long-term loan package to Ukraine of €1.5 billion a month

President of the European Commission, Ursula von der Leyen on Sunday said she would this week propose the EU formulate a financing package for Ukraine up to €1.5 billion a month totalling up to €18 billion to cover Kyiv’s financing needs for 2023.

The announcement was made by the Commission following a phone call between von der Leyen and Ukraine’s president Volodymyr Zelensky.

“The main focus of the conversation was on ensuring financial support for Ukraine in the months ahead,” the Commission’s announcement said.

“President von der Leyen informed President Zelensky that she would this week propose a substantial financial package from the EU of up to EUR 1.5 billion a month, totalling up to EUR 18 billion, which would contribute significantly to cover Ukraine’s financing needs for 2023. Both leaders recognised the importance of ensuring predictable and regular funding of essential state functions.”

The Commission said the support would be in the form of highly concessional long-term loans, with coverage of the interest costs, would also work to support Ukraine’s reforms and its path towards EU membership.

The EU financial package would need to be matched by similar support from other major donors, it added.

“President von der Leyen confirmed ongoing work by the EU to continue to provide immediate humanitarian support to Ukraine, particularly over the winter,” it added, saying that von der Leyen had reiterated that the EU was in it for the long haul in its support for Ukraine.

They also discussed strengthening sanctions as well “as the negative role played by Iran’s support for Russia’s aggression and how to respond”.