Green light for billions for Kiev. There is an agreement between EU countries

EU member states reached an agreement on Wednesday on financial support for Ukraine in the amount of EUR 90 billion. This is a breakthrough, although not the last step in the legislative procedure, which will enable aid to be paid to Kiev at the beginning of the second quarter of this year, when Ukraine runs out of money.

The agreement means the resolution of the dispute over Ukraine's ability to purchase weapons with EU funds in non-EU countries, in particular in Great Britain. This delayed the decision of member states, some of which supported the introduction of the “buy in the EU” principle. NATO Secretary General Mark Rutte criticized this at the end of January, saying that Europe is currently unable to provide Ukraine with enough weapons.

Military support for Ukraine is to go to EUR 60 billion out of EUR 90 billion of support granted in the form of a loan, and the remaining part is to be allocated for budgetary purposes and reforms.

According to an EU source, according to the agreement between the capitals, Ukraine should purchase equipment mainly from EU companies for this money. – If Ukraine's military needs require the urgent delivery of a defense product that is not available in the EU, Ukraine or an EEA/EFTA associated country, special derogations will apply, the person said.

These derogations will allow Kiev to place orders outside the EU, but only if third countries meet EU conditions. These conditions were differentiated by introducing two categories of third countries under the so-called cascade approach.

It will be easier for Kiev to purchase equipment from third countries that participate in the SAFE defense loan program. So far, only Canada has joined it, and Great Britain has abandoned negotiations on this matter.

The second category concerns countries that have entered into a security and defense partnership with the EU, committed to provide a fair and proportionate financial contribution to the costs arising from the loan, and provide significant financial and military support to Ukraine. Purchases in countries from this group will have to obtain the consent of member states. The UK will fall into this category.

As for the EUR 30 billion that the EU wants to allocate for Ukraine's budget support, Kiev will receive this money after presenting its financial strategy. Financing will depend on meeting conditions such as compliance with the rule of law, including the fight against corruption.

Now member states will start negotiations with the European Parliament. Countries will also have to ask the European Parliament for consent to change the EU budget that will guarantee the EU loan to Ukraine. Once all steps are completed, the European Commission will be able to disburse the first tranche at the beginning of the second quarter of this year.

Hungary, the Czech Republic and Slovakia do not participate in the loan, which means that they will not participate in the repayment of interest on the loan.

The EU loan for Ukraine will be obtained on the capital markets by the European Commission. Ukraine will repay it when it receives war reparations from Russia. Until then, Russian assets in the EU will remain frozen.

From Brussels Magdalena Cedro (PAP)

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