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fund to €3.6B.
Hungary tried to block €500M in aid for Ukraine, but the EU has a backup plan. Hungary blocked access to the European Peace Fund money that EU countries have been using to purchase weapons for Ukraine. According to a high-ranking EU diplomat, EU countries will pressure Budapest on January 23 during a meeting of EU foreign ministers, which will work on coordinating the seventh package of EU military aid to Ukraine. Until now, Hungary, which itself does not supply weapons to Ukraine, has abstained from voting on decisions regarding upcoming aid tranches and has not prevented defence support to Ukraine. The Hungarian veto is now particularly infuriating to EU diplomats, as it has no justification other than that it favours Russia. However, if Budapest stands its ground, the EU may adopt this decision which has been agreed upon by the other 26 EU countries. Moreover, the EU Council also plans to consider the allocation of an additional €45M for training Ukrainian soldiers.
The EBRD plans to deliver €3B to Ukraine in 2022-2023. The European Bank for Reconstruction and Development has no plans to reduce its investment volume in Ukraine this year. Last year, the bank’s investments amounted to €1.7B, said the bank's Managing Director of Eastern Europe and the Caucasus, Matteo Patrone. He specified that the number of activities might increase, but the bank must remain highly flexible regarding investment directions. Patrone added that the EBRD might focus more on transportation logistics and municipal infrastructure in 2023. To date, the EBRD has deployed €1.7B to support Ukraine’s real economy through investments in vital infrastructure, energy and food security, trade, and support for the private sector. A further €200M was delivered through partner banks. By the end of this year, the EBRD plans to increase its investment in Ukraine to €3B.
Germany announces 1 billion euro spring military aid package for Ukraine. Germany will provide Ukraine with a 1 billion euro ($1.1 billion) military assistance package, German Defense Minister Boris Pistorius said at the Ramstein-8 summit on Jan. 20, according to Ukrinform.
Finland to provide Ukraine with 400 million euro military aid package. Finnish President Sauli Niinisto has approved the government’s proposal to provide Ukraine with an additional military aid package worth more than 400 million euros. In the largest aid package up to date, Finland will supply heavy artillery and munition, according to the country’s Defense Minister Mikko Savola.
Ukraine already knows where to get the first UAH 110B for reconstruction. The government has identified four key funding sources for Ukraine's recovery program, Prime Minister Denys Shmyhal said. First, UAH 17B of confiscated funds from Russian banks have already been directed to the Fund for Liquidation of the Consequences of Armed Aggression. The second source of funding from the state budget. This year, UAH 35.5B will be directed to the proposed Fund from NBU profits. The third source of funding is from international partners. The US has decided to allocate $1.4B (UAH 56B) for Ukraine’s reconstruction. The fourth source is the funds from donors from all over the world, which are being collected through the United24 platform. Shmyhal clarified that the total amount for recovery from identified sources is about UAH 110B ($3B). In total, Ukraine expects to receive $17B (UAH 680B) to restore its damaged properties.
34 UKRAINE Country Report February 2023 www.intellinews.com