BRUSSELS — European Union nations on Tuesday approved fresh aid for Ukraine as the country faces growing economic damage from Russia’s invasion.
The 27 member countries of the E.U. have their finance ministers. The approval was given Tuesday for 1 billion euros ($1 million) in loans to Ukraine’s government.
It brings the E.U. total to 2.25 billion euros. Kyiv will receive macro-financial aid this year. An initial 1.2 billion-euro E.U. loan package got the green light from the bloc’s finance chiefs days before Russia’s full-scale Feb. 24 attack.
The European Commission, the E.U.’s executive arm, in mid-May proposed extra assistance of up to 9 billion euros to Ukraine. As Russia continues to make advances in Ukraine, casualties are increasing on both side.
“This will give Ukraine the necessary funds to cover urgent needs and ensure the operation of critical infrastructure,” said Zbynek Stanjura, finance minister of the Czech Republic, which currently holds the E.U.’s rotating presidency, in a statement.
Last week, Ukraine stated that $750 billion would be required to rebuild its economy after the war. The government of Kyiv will require around 5 Billion Euros per month to maintain its economy’s viability.
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The Group of Seven, which includes the United States and Canada, has pledged support to Ukraine in meeting its short-term financial needs. They also promised to provide military assistance to Kyiv, as well as economic sanctions that will be applied to Russia.
This five-month-old civil war has global economic and socio-economic repercussions. It can lead to food shortages in Africa or energy disruptions within the E.U. This is increasing the chance of global recession.
E.U. The E.U. is likely to reduce its prediction of economic growth across the bloc in 2022 on Thursday for the third year running.
According to the European Commission, E.U. The E.U.’s gross domestic product will grow 2.7% by 2022. This is a decrease from the February forecast of 4%. However, the February outlook was less than the November forecast of 4.3% E.U. This year’s GDP growth.
Russia has reduced or cut its natural gas supplies to the EU by more than 10% in the last two months. Inflation in Europe continues to rise, with many countries experiencing a cut or reduction of natural gas deliveries. The euro-coin-dependent 19 nations saw record inflation of 8.6% in June.
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