EU ready to shift focus on financing Ukraine to reconstruction if peace achieved – EU Commissioner

European Commissioner for Economy and Productivity Valdis Dombrovskis believes that achieving a just and long-lasting peace agreement will enable a focus on financing Ukraine’s reconstruction.

“Obviously, it will then be necessary to discuss with the Ukrainian authorities and determine how we subsequently adjust our funding from international donors. This is clearly because one of the key assumptions in assessing funding needs is always the duration and intensity of the war,” he told reporters at a press conference on Thursday, 20 March, following his visit to Kyiv, as reported by Interfax-Ukraine.

Dombrovskis emphasised that the EU stands ready to adapt its financial support, particularly in light of a potential reduction in U.S. military aid or progress in ceasefire negotiations.

He reminded that the Ukraine Facility assistance programme will run until 2027, and the G7’s ERA loan mechanism, secured by immobilised Russian assets, until 2026.

“And then, of course, we will need to determine whether additional funding is required and how much. Typically, this process involves IMF’s assessment of Ukraine’s funding needs first, and then international donors work on how to cover those needs,” the EU Commissioner explained.

According to him, this assessment is usually conducted in mid-year due to the high level of uncertainty in the situation.

On 20 March, the European Council approved the disbursement of the third payment under the Ukraine Facility, amounting to nearly €3.5 billion.

The Ukraine Facility is an instrument that provides for the possibility of Ukraine receiving financial and technical assistance from the EU from 2024 to 2027, for a total of €50 billion. Of this amount, €38.27 billion will be allocated to budgetary support, €6.97 billion to the investment fund, and €4.76 billion to technical and administrative support.

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