EU Offers Ukraine 50 Bln Euros through 2027

A photograph taken in Kherson on June 20, 2023 shows an area which was flooded by rising water following the collapse of the Kakhovka hydroelectric power plant dam in Chornobaivka. (AFP)

The European Union will provide Ukraine with 50 billion euros ($54.58 billion) in aid for 2024-27, the bloc's president said on Tuesday, ahead of a gathering in London to secure short-term financing and money to rebuild the nation from Russia's war.

Ukraine is seeking up to $40 billion for the first part of a "Green Marshall Plan" for reconstruction from the London conference starting on Wednesday. The World Bank estimates its needs at more than $400 billion over a decade, three times Ukraine's GDP.

European Commission President Ursula von der Leyen said the aim was to "provide predictable finance to Ukraine on its EU path, together with global partners and the private sector."

In a symbolic move, the EU granted Ukraine formal membership candidate status last year. Sources said the EU will say in a report this week that Ukraine has met two out of seven conditions for formal accession talks to begin. It will also highlight progress made despite the invasion in February 2022.

Of Tuesday's aid pledge, 17 billion euros would come in free grants and the rest in the form of low-interest loans, said Johannes Hahn, commissioner for budget and administration.

For 2023, the EU granted Ukraine 18 billion euros in macro-financial assistance.

Ukraine's Prime Minister Denys Shmyhal thanked the EU for a "steadfast commitment to supporting Ukraine on our path towards EU membership."

In Kyiv on Tuesday, Ukrainian officials said Russia attacked military and infrastructure targets across the country, including in the western city of Lviv.

The 50 billion-euro figure comes after a review of the EU's 2021-27 shared budget, which has been depleted by the COVID-19 pandemic, the war in Ukraine and an energy crisis. High inflation and interest rates have also doubled debt-servicing costs, Hahn said.

The EU is asking countries to chip in an extra 66 billion euros, with an additional 15 billion euros to be assigned to manage irregular immigration, including by extending aid to countries in the Middle East and Africa to ensure more people stay there.