EU proposes additional financial assistance of €9 billion for war-torn Ukraine in 2022

As the war continues to escalate in Eastern Europe and entered day 84th, the European Union (EU) on Wednesday proposed an additional €9 billion ($9.5 billion) in macro-financial assistance for war-torn Ukraine in 2022. European Council President Ursula von der Leyen stressed that that bloc will continue to be on Ukraine's side throughout this war and they start rebuilding. She stated that the EU has a responsibility and a strategic interest in leading efforts to rebuild Ukraine, and she suggested that a rebuilding platform be established for the same. 

Von der Leyen went on to say that Ukraine and the EU executive body would lead the platform, which would coordinate the actions of EU members, other nations, international donors, and international financial institutions. According to her, Ukraine's rehabilitation should include both investment and reforms in areas such as "anti-corruption, administrative capability, rule of law, and judiciary independence. "These investments will help Ukraine emerge stronger and more resilient from the devastation caused by the Russian military," she added. 

EU Member States increasing their defence spending: Von der Leyen

The European Commission President claimed that the Member States are increasing their defence spending. She suggested that this money should be spent in a coordinated way and address capability gaps identified by the EU and North Atlantic Treaty Organization (NATO). "We will set up a task force with the Member States to coordinate immediate replenishment and procurement needs. It will be accompanied by a financial incentive instrument to purchase jointly.  And then in the fall, we will propose a regulation to make sure that joint procurement benefits from full VAT exemption," she remarked. 

EU to provide additional €500 million in military aid to Ukraine

It is worth mentioning here that the EU also pledged to provide additional 500 million euros (over Rs 4,021 crores) worth of military assistance to war-torn Ukraine. Speaking to reporters on May 13, the EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, said, "We will provide a new tranche of 500 more million to support the military of Ukraine," the Associated Press (AP) reported. He added that the funds would be used to purchase heavy weapons, bringing the EU's total financial support for Ukraine to 2 billion euros ($2.1 billion).