Reaching a peace agreement that is fair and sustainable will allow the EU to increase its focus on financing recovery, European Economic Commissioner Valdis Dombrovskis said.
“Obviously, we will then need to discuss with the Ukrainian authorities and see how we adjust our funding from international donors, obviously, because one of the main assumptions in this assessment of funding needs is always the question of how long the war is going on, what the intensity is, and so on,” he told reporters at a press conference on Thursday following his visit to Kyiv.
Dombrovskis emphasized that the EU, for its part, is ready to adjust its funding both in the context of, for example, a reduction in US military aid and in the context of progress in a ceasefire or peace agreement.
He reminded that the EU’s Ukraine Facility program is currently designed to support Ukraine until 2027, while the ERA loan mechanism from G7 partners at the expense of frozen Russian funds is designed to cover part of 2026.
“And then, of course, we will need to see if and how much additional funding is needed. Usually, this process is organized in such a way that the IMF has to assess the financing needs for Ukraine, and then international donors work on how we cover these financing needs,” the European Commissioner explained.
According to him, this program usually starts somewhere in the middle of the year, because, obviously, all this is surrounded by very high uncertainty.
