• A fresh proposal from the European Commission would give Ukraine financial assistance of EUR 8 billion in a combination of grants and loans.
• Germany declined to offer guarantees to support EUR 9 billion in loans for Ukraine, prompting the latest request.
• Berlin claimed that grants are more appropriate for assisting the troubled country, which is already deeply indebted.

A fresh proposal from the European Commission would give Ukraine financial assistance of EUR 8 billion in a combination of grants and loans.

In accordance with the amount of money each EU member state contributes to the bloc’s budget, the EU would lend up to EUR5 billion as long-term loans secured by guarantees offered by those nations. The EU money would be used to subsidise interest payments. The officials indicated that grants would be given out for the remaining sum, or about $3 billion, in the report.

Germany declined to offer guarantees to support EUR 9 billion in loans for Ukraine, prompting the latest request. Berlin claimed that grants are more appropriate for assisting the troubled country, which is already deeply indebted. Germany had previously contributed its own grant of EUR 1 billion.

Although a schedule has not yet been established, a source indicated that the Commission hopes to get support from the European Parliament and other EU nations in September so that disbursement can begin in October.

Volodymyr Zelensky, the president of Ukraine, criticised the EU for the delay in funding in his most recent video message.

Back in May, EU leaders committed to giving Kiev macrofinancial support worth “up to EUR9 billion.” But to now, the Commission has only been able to make loans backed by the EU budget totaling EUR1 billion.

Since Russia’s invasion, Kyiv has been experiencing a $5 billion monthly financial deficit. It has requested assistance from overseas donors so that it can pay for necessities like public sector salaries and pensions.