The European Union is planning to establish a solidarity trust fund to finance the reconstruction of war-shattered Ukraine as member states were told they should expect to pay the bulk of the costs.
This was reported by Bloomberg.
"The European Commission told diplomats it’s working on an EU instrument focusing on the long-term needs of the country instead of a multilateral tool since the bloc will foot much of the bill, according to people familiar with the discussion. Modeled on the post-Covid-19 recovery fund for member states, it would finance investments and reforms in agreement with Ukraine’s government, but it’s not clear how much would be provided through grants or loans," - says the message.
As the war is still ongoing, EU executives are not ready to announce the final amounts but they have told EU ambassadors that the figure will reach hundreds of billions of euros over decades.
The first step will be a thorough assessment of Ukraine's needs that will be conducted by the European Commission and the World Bank.
The first part of the aid will be spent on infrastructure rehabilitation and the provision of public services. The possibility of expanding guarantees to help Ukrainian companies, including agricultural ones, is also being considered.
On 14 April 2022, the European Union approved the allocation of another 500 million euros for military assistance to Ukraine.
It is also known that the European Union is considering the use of blocked russian assets to rebuild Ukraine.