EU member states have approved a €50bn (£39bn) aid package for Ukraine, but how important is it?
It can be difficult to guess which ones to focus on, as large sums of money are often promised in the news.
Here we take a closer look at Ukraine’s financial situation.
top supporter
The two main players are the EU and the US. As of December, the EU and its member states had pledged 133 billion euros in aid, followed by the United States with 71 billion euros, according to the Kiel Institute for the World Economy.
The rest of the world contributed just under 37 billion euros.
Most of the aid provided by the US is military support, while the EU provides the bulk of its aid in financial support.
ukrainian outing
Ukraine’s Finance Minister Serhiy Marchenko said the cost of one day’s fighting would be about 125 million euros.
It is therefore not surprising that Ukraine spends almost all of its domestic revenues on the defense sector and the army, but this requires large-scale financial support to disburse social payments, wages and pensions. It means.
The government expects a budget deficit of around 40 billion euros this year and expects to receive 38 billion euros in international aid to cover it.
eu aid
Kyiv hopes that 18 billion euros of this will come from the EU’s Ukraine Facility. The €50 billion support package agreed today will run until 2027.
What will happen to US aid?
Senior lawmaker Yaroslav Zhelezniak said Kiev is seeking 7.8 billion euros to cover its budget deficit.
President Joe Biden asked Congress for nearly 97 billion euros to fund border security programs for Ukraine, Israel and the United States, but Republicans who control the House of Representatives rejected the package in October.
Further consultation on funding for these three areas will be followed by a vote in the House of Lords next week.
the rest of the world
Ukraine expects to receive 5 billion euros in loans from the IMF this year, but they are tied to certain reforms on the Ukrainian side.
A further 1.4 billion euros is expected from other international financial institutions, including the World Bank.
Financial support packages are also expected from the UK and Japan, and talks are ongoing with Canada, Norway and South Korea.