Ukraine receives over $160 million in EU grants for recovery efforts

Ukraine received 150 million euros ($164.5 million) in EU grants under the Support to Ukraine's Fast Recovery financing agreement, the Ukrainian Finance Ministry announced on Dec. 20.

Russia's full-scale invasion of Ukraine inflicted extensive damage to the country's infrastructure and property. In July, Prime Minister Denys Shmyhal estimated the total reconstruction costs to be $750 billion.

"Grant funding will support priority measures in restoring critical infrastructure damaged by Russian aggression, namely transport, communal facilities and services, social infrastructure, and residential areas," Finance Minister Serhii Marchenko said.

The second tranche of 100 million euros ($109.6 million) is expected in the first quarter of 2024. These funds will be allocated to recovery efforts and the agriculture sector.

During the Ukraine Recovery Conference in London in June, the EU presented a funding package of 50 billion euros ($55 billion) for Kyiv, aimed to cover 45% of the country's estimated fiscal gap until 2027.

The funding was blocked by Hungarian Prime Minister Viktor Orban during the European Council summit on Dec. 14-15. EU leaders will address the issue again at the next meeting on Feb. 1.

In November, the International Monetary Fund (IMF) assessed Ukraine's recovery as "stronger than expected," but the organization's head commented more recently that the process depends on continued financial backing from the West.

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