The Verkhovna Rada of Ukraine has ratified the loan agreement from the European Union. In the first reading, it also approved the act on budget changes taking into account the increase in international financial assistance.
As a result, Ukraine's defense spending this year will increase to a record amount of $100 billion. (PLN 362.3 billion) compared to the previously forecasted USD 64 billion. (PLN 232 billion). Last year's defense budget of $61.4 billion. (PLN 222.7 billion) will be exceeded by almost 63%. – reports Reuters.
In this way, Ukraine's defense expenditure will be not three times, but 1.8 times lower than Russia's (in this year's budget, Russia allocated 12.93 trillion rubles, or PLN 660 billion, for this purpose).
The decision of the Verkhovna Rada of Ukraine, adopted by 298 votes against the required 226, was the final step needed for the EU to allocate funds to Ukraine. Kiev is expected to receive EUR 3.2 billion (PLN 13.5 billion) in June, and a total of EUR 45 billion (PLN 190 billion) this year. The remaining EUR 45 billion is to be received in 2027. – It was one of the most important votes – it showed the constructive nature of our joint work and our readiness to listen to each other – said Volodymyr Zelensky to Ukrainian MPs.
According to the draft bill on budget changes, the Ukrainian government will allocate EUR 31.8 billion (PLN 134.4 billion) from the EU loan for defense, and EUR 13.2 billion (PLN 55.8 billion) to cover the budget deficit. As a result, it will decrease to 12.1%. compared to the forecast 18.5 percent.
Receiving funds from the EU loan in the future will depend on reforms being carried out in Ukraine – for example, weakening the process of fighting corruption may lead to the temporary suspension of aid. These conditions are analogous to those agreed by Ukraine with the International Monetary Fund – which agreed to open a credit line for it in the amount of USD 8.1 billion. (PLN 29.4 billion).
