Bloomberg: EU considers €100 billion fund to support Ukraine

The European Union is weighing the creation of a €100 billion ($117 billion) fund to provide long-term financial support to Ukraine as the war triggered by Russia’s full-scale invasion shows no signs of abating.

According to sources familiar with the matter, the proposed fund could be integrated into the EU’s next seven-year budget plan, set to be unveiled later this month. If approved by member states during budget negotiations, the disbursement of funds would begin in 2028 to ensure steady aid for the war-torn country, Caliber.Az reports, citing Bloomberg.

This initiative would further shift the responsibility of supporting Ukraine towards Europe and lessen reliance on the United States. The Trump administration has expressed scepticism about additional aid to Kyiv, having briefly halted some weapons deliveries last week before reversing that decision on Monday.

Since the onset of the invasion over three and a half years ago, the EU has provided nearly €160 billion in assistance to Ukraine. This includes a €50 billion fund extending grants and loans until 2027. Alongside the Group of Seven nations, the EU also created a $50 billion loan-based instrument for Kyiv, financed by proceeds from frozen Russian central bank assets.

The new funding mechanism is expected to follow the existing framework where the European Commission—the EU executive body—offers aid via grants and low-interest loans. Most financial support has been tied to reforms Ukraine must implement on its path to EU membership.

The proposal is among several options under consideration and will be discussed before the details of the upcoming Multiannual Financial Framework (MFF) are released on July 16, although some aspects may emerge later.

A commission spokesperson declined to comment on specifics of the MFF proposal prior to its official publication.

In June, the commission informed EU finance ministers that Ukraine’s financial needs should be met until early 2027 and that this year’s $8.4 billion increase in defence spending would be financed domestically. The commission also cautioned about a potential budget shortfall caused by the ongoing conflict, a reduction in international aid, and weakening economic activity.

EU Commissioner for Economy Valdis Dombrovskis told reporters on July 8, “we are now indeed assessing and working on different options” to secure financing for next year, adding that the bloc was “ready to provide all necessary support for Ukraine for as long as it’s needed.”

Dombrovskis further explained that the commission will consider “the options it has to increase assistance through the EU budget and also through the possibilities of using the proceeds from Russian sovereign assets” once the International Monetary Fund evaluates Ukraine’s potential financing gap.

By Vugar Khalilov