European Union approves $54 billion aid package for Ukraine

Europe, News February 2, 2024 , by IRIA No Comments

The leaders of the 27 European Union nations finalized an agreement to offer Ukraine a fresh $54 billion (50 billion Euros) support package for its economy. This decision was reached despite weeks of Hungary’s threats to veto the proposal.

European Council President Charles Michel announced the agreement that was reached in the first hour of a summit he was chairing in Brussels. The EU’s aid package seeks to provide support to Ukraine’s trembling economy which has been deeply affected by the ongoing conflict.

“We have a deal,” Michel said in a post on X, formerly known as Twitter. He said the agreement “locks in steadfast, long-term, predictable funding for Ukraine,” and demonstrated that the “EU is taking leadership and responsibility in support for Ukraine; we know what is at stake.”

We will continue to support the brave Ukrainian Armed Forces.

We have so far mobilised €28 billion in military assistance.

And will boost our own capacities with the upcoming Defence Industrial Strategy.

Aiming to make Europe move from emergency response to defence readiness. pic.twitter.com/MNpjiC8nna
— Ursula von der Leyen (@vonderleyen) February 1, 2024

Ukraine’s President Volodymyr Zelenskyy said the EU’s approval of the aid package would strengthen long-term economic and financial stability as the war with Russia approaches its third year. “It is very important that the decision was made by all 27 leaders, which once again proves strong EU unity,” he said on X.

“Continued EU financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than military assistance and sanctions pressure on Russia,” he added.

Ukraine has grown increasingly desperate to secure financial support from Western nations. Political delays in both the United States and the European Union regarding aid have strengthened Russian confidence during the protracted war.

As the Russia-Ukraine war is almost a month away from entering its third year, Kyiv’s war fatigue has settled in Ukraine’s Western allies. This is the second time that the European leadership has come together to approve financial aid for Ukraine.

^{European Commission President Ursula von der Leyen (L) and Ukrainian President Volodymyr Zelenskyy (R) make statements following their talks in Kyiv on June 11, 2022. (Image Credit: Sergei Supinsky/AFP)}

Hungary’s Orban folds

The European leaders finally managed to win over Hungary’s Prime Minister Victor Orban with three additions. He had previously blocked the aid package for Ukraine when the group met last month.

In December last year, when the meeting was called to approve funds for Ukraine, Hungary’s Prime Minister blocked the European Union’s aid. Orban was the only EU leader to veto a resolution. He also voted against opening Ukraine’s European Union membership application.

Orban, who has close ties to Russian President Vladimir Putin, was angry at the European Commission’s decision to block his government’s access to some of the bloc’s funds, which they did over concerns about possible threats to the EU budget by Hungary.

For his decision to block aid for Kyiv, the Hungarian Prime Minister faced a lot of criticism from his fellow European leaders.

“I don’t want to use the word blackmail, but I don’t know what other better word” might fit, Estonian Prime Minister Kaja Kallas told reporters as she arrived for the meeting in Brussels. “Hungary needs Europe,” she said. “He should also look into what it is in it for Hungary, being in Europe,” added Kallas, referring to Orban.

*^{Hungary’s Prime Minister Viktor Orban walking in front of the European Union flag. (Image Credit: Johanna Geron/Reuters)}*

President Zelenskyy also urged the Hungarian President to lift his blockade from Ukraine’s path to join the EU. “I asked him to tell me one reason, not three, five, 10, tell me one reason,” as for why Kyiv should not be a part of the European Union, Zelenskyy said last month about Orban at a press conference following Argentina where he met with the Hungarian leader. “I am still waiting for (an) answer,” he added.