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continue to help Ukraine.
The EU has found a way to provide Ukraine with €2B of macro-finance assistance. On October 11, the European Commission allocated a double tranche of €11B, the funds from which will be used to support Ukraine within the framework of the NextGenerationEU program. According to the EC website, the agreement provided for the issuance of a €5B 7-year bond maturing on December 4, 2029, and a new €6B 20-year bond maturing on November 4, 2042. The EU raised another €11B, where €2B will be quickly allocated “to help Ukraine to fight the Russian aggression”, commented Commissioner for the Budget Johannes Hahn. From the funds raised from selling new 20-year bonds, €2B will be provided to Ukraine as loans. This is the first tranche of the 5bn euros package. In total, Ukraine has received 4.2bn euros of macro-financial assistance from the European Union in 2022, according to Shmyhal.
The European Commission has promised to pay €9B in microfinance assistance by the end of the year. At the EU summit, the finance ministers from the participating countries were instructed to develop a mechanism to allocate at least €18B to Ukraine in 2023, said the President of the European Commission, Ursula von der Leyen. The EC president clarified that Ukraine is asking for financing amounting to €3-4B per month to provide for basic needs. Moreover, this money should be provided by the US, the EU, and financial institutions. "So, the discussion was about €1.5B per month for Ukraine, financed by the EU. This gives a total amount of €18B next year - an amount that Ukraine can rely on," Von der Leyen noted. The EC president added that by the end of the year, the EU will transfer a €9B tranche of macro-financial assistance to Ukraine.
The EU will increase military aid to Ukraine to €3.1B. The European Union has officially approved the allocation of another €500M tranche in security aid to Ukraine to increase the stability of the Ukraine Armed Forces, according to the EU Council. "Russia's latest indiscriminate attacks on the Ukrainian civilian population and infrastructure are yet another proof of Russia's complete disregard for human rights and international law. Nevertheless, the EU will continue to support Ukraine as long as necessary," said EU High Representative Josep Borrell. From the new aid package, €490M will go to military equipment designed to deliver lethal weapons for defensive purposes, and €10M to cover costs for the transfer of equipment and consumables, such as personal protective equipment, first aid kits, and fuel. The aid will also provide maintenance and repair of military equipment that has already been transferred to Ukraine by EU member states
IMF: Ukraine may need up to $5bn in financial aid monthly in 2023. The International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Oct. 25 that Ukraine’s external financing needs in 2023 will be around $3bn to $4bn a month in a best-case scenario but could reach $5bn as Russia targets the country’s critical infrastructure.
The IMF has approved $1.3B in additional assistance for Ukraine. The Board of Executive Directors of the IMF approved an additional $1.3B tranche to Ukraine on October 7, the NBU reported. These funds will come within the extended Rapid Financing Instrument (RFI), which provides additional anti-crisis assistance to countries suffering from a significant payment balance deficiency caused by the global food crisis. The IMF noted that the new
34 UKRAINE Country Report November 2022 www.intellinews.com