Ukraine needs $1.1 trillion to repair war damages, claims top European bank official

Amidst the ongoing ruthless war in Ukraine, the President of the European Investment Bank, Werner Hoyer said that to rebuild the damage created by the Russian assaults, Ukraine may require $1.1 trillion in foreign aid. European bank official Hoyer made this statement during a news conference in Frankfurt, Germany, the Nexta reported.  

Besides this, in an interview with Interfax-Ukraine at the March-end, the Ukrainian Prime Minister Denys Shmygal also asserted that Ukraine's losses from Russia's military aggression surpass $1 trillion, taking into consideration the damages to infrastructure and the economy, along with future losses in the following years. 

Funds needed by Ukraine

Meanwhile, Ukraine has received a $1.49 billion loan from the World Bank, according to the Kyiv Independent. Serhiy Marchenko, Ukraine's finance minister, and Arup Banerjee, World Bank Regional Director for Belarus, Moldova, and Ukraine, inked a loan deal earlier on June 7. Later, on June 9, Thursday, the Ministry announced in a statement that the funds will be used to pay state education institutions' staff at both the national and regional levels. 

While signing the agreement, Serhiy Marchenko said, “We are grateful to the World Bank for its next contribution to supporting Ukraine's financial stability. At present, it is difficult to overestimate your help, especially in the context of full-scale armed aggression in Russia. The funds raised will allow Ukraine to increase funding for public sector employees, as well as ensure sustainable public administration in Ukraine," as per media reports.  

It is worth noting that the embattled Ukrainian President, Volodymyr Zelenskyy confessed that his nation required at least $5 billion each month to keep its government running in the face of Russia's relentless invasion. 

Furthermore, European Commission pledged additional 205 million euros in humanitarian assistance for Ukraine on June 9, despite the nation's continued resistance to Russian attempts to seize eastern territory. Balazs Ujvari, a spokesperson for the commission, noted in an online statement that the bloc's overall funding for Kyiv now stands at roughly 350 million euros. 

Moreover, Ujvari stated that the EU had provided 700 million euros in material help to Ukraine under its 'Civil Protection Mechanism.' In a second statement, the European Commission said that it would provide up to €60,000 in funding to at least 200 Ukrainian deep tech start-ups, with the goal of securing their success and driving the revival of the Ukrainian economy. 

Apart from this, on June 17, the Ukrainian government obtained a 1 billion Canadian dollar ($773 million) concessional loan from Canada. As per the Zelenskyy administration, the funds were raised in accordance with the loan arrangement between Ukraine and Canada. These are the first money received by Ukraine under the administrative account method of the International Monetary Fund (IMF). The loan has a ten-year duration and an annual interest rate of 1.69 percent, according to the Ukrainian government. 

(Image: AP)