EU Seals Massive $54 Billion Aid Deal for Ukraine After Hungary Gave In

By Jace Dela Cruz

Feb 02, 2024 06:55 AM EST

The leaders of the 27 European Union (EU) countries agreed on Thursday to give Ukraine a new 50-billion-euro ($54 billion) aid package after Hungary gave in not to veto the move. 

(Photo : FABRICE COFFRINI/AFP via Getty Images)
TOPSHOT - Ukrainian President Volodymyr Zelensky gestures while addressing the assembly at the World Economic Forum (WEF) annual meeting in Davos, on January 16, 2024.

EU Agrees to Give Ukraine a New Financial Aid Package

According to TIME, European Council President Charles Michel announced the agreement at the leaders' summit in Brussels after weeks of threats to veto the move by Hungary.

Michel noted that the deal "locks in steadfast, long-term, predictable funding for Ukraine" and displays the EU's determination to support the "future" of Kyiv.

The Associated Press reported that the support package, which is around two-thirds loans and one-third grants, was not for helping Ukraine to fight off Russia. 

Aside from supporting Ukraine's war-ravaged economy and paying for rebuilding, the fund was also aimed at setting the country up for future EU membership. The EU reportedly has a separate proposal for funding arms and ammunition.

READ ALSO: Here's Why EU's Confiscation of Russian Central Bank Assets Is Highly Unlikely

Hungary Lifts Veto to Give Ukraine New Financial Aid Package

According to reports, Hungary lifted its veto, and so quickly. When asked what Hungarian Prime Minister Viktor Orban was offered in exchange for lifting his veto, the Washington Post reported that French President Emmanuel Macron said Hungary "didn't receive a gift" but "got the guarantee that the approach toward it will not be discriminatory.″ 

Orban, the EU leader with the closest ties to Russia, has been raising objections to the financial aid package since December. Following Russia's invasion of Ukraine nearly two years ago, Kyiv's economy is in chaos that desperately needs propping up. Russia's war of aggression against Kyiv has caused lower global growth and higher inflation.

In a post on X, Ukraine's President Volodymyr Zelenskyy welcomed the assistance and said that continued financial aid from the EU would strengthen the country's long-term economic stability. Ukraine will reportedly receive the first tranche of money as early as March.

READ MORE: Russia's Vladimir Putin's Income as President Revealed: How Much Money Did He Earn in the Past 6 Years?

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