European Parliament Committees support a €50-billion multi-year plan to support Ukraine

The European Parliament’s Committees on Budget and Foreign Affairs have overwhelmingly supported the proposal for a €50 billion multi-year support plan for Ukraine.

It is a new EU instrument, the Ukraine Facility, which provides 50 billion euros for 2024-2027 in grants and loans to support Ukraine’s reconstruction, and modernization, as the European Parliament press service reported.

In the committee voting, the plan was supported by 86 votes in favour, while six members voted against and two abstained. The European Commission made this proposal in June 2023.

Long-term EU support for Ukraine

On October 3, the European Parliament voted in favour of a resolution to revise the EU budget for 2021-2027, which, among other things, provides for creating a special €50 billion Ukraine Fund.

The €50 billion program for Ukraine is part of revising the EU’s long-term budget in response to a series of crisis events after 2021. MEPs believe this mechanism should be approved as soon as possible, as part of the overall budget review, to have a clear funding source to support Ukraine in its war against Russian invaders in 2023.

It should also be included in the annual budget 2024, which will be negotiated in November.

Using frozen Russian assets to rebuild Ukraine

One of the key demands of MEPs is to use frozen Russian assets to rebuild Ukraine.

One of MEPs’ key demands is that assets from Russia or other entities or individuals directly in connection with Russia’s war of aggression be used to rebuild Ukraine, MEPs strengthened.

It also safeguards against corruption, fraud and other violations in using European funds in Ukraine. Companies under oligarchic influence should not be eligible for the EU funding, MEPs underlined.

Read also: EU approves new €3.5bn military aid package for Ukraine

More transparency for EU funds usage in Ukraine

During consideration in the committees, some changes were made to the draft law to make it more transparent. In particular, it provides for creating a separate website on the funds allocated to Ukraine for specific purposes and the steps that Ukraine has taken to receive assistance. MEPs also want contributions from third countries and international institutions to be published.

The plan for reforms and investments with the EU’s participation should be approved in consultation with the parliament of Ukraine.

The draft will be put to a vote during the plenary session on October 16-19. Negotiations with individual member states will begin once the EU Council agrees on its coordinated position.

Hungary’s opposition

According to the Bloomberg report, Hungary wants to divide this support package and proposes to agree on 25 billion euros initially.

Last week, Hungary informed the EU member states that, at this stage, the approval of 25 billion euros would be enough for Ukraine. Brussels had planned a €50 billion support program for Ukraine for 2024-2027.

The majority of Europeans continue to support Ukraine

Most Europeans favour continuing to support Ukraine, although the figures vary significantly for different types of support.

This is evidenced by the latest results of the Eurobarometer survey conducted in the last week of August in all EU member states.

The highest rates of continuation of humanitarian support for war-affected Ukrainians from the EU were recorded: 86% of respondents approved it. 77% agree that the EU should accept Ukrainians travelling abroad because of the war.

Economic sanctions against Russia for the war are supported by 71%. 57% believe that the EU should continue to support the purchase of weapons and ammunition for Ukraine and help with military training.

Read also: Borrell: EU membership is the best security guarantee for Ukraine