Estonia Proposes 120 Billion Euro Financing Plan for Ukraine

by Cheplyk Roman
Wednesday, March 13, 2024
Estonia Proposes 120 Billion Euro Financing Plan for Ukraine

Estonia has put forward a proposal for a 120 billion euro annual financing plan aimed at supporting Ukraine

Kusti Salma, the Permanent Secretary of Estonia's Ministry of Defense, mentioned that a portion of this funding could be sourced through Eurobonds. The plan underscores the necessity of either borrowing from financial markets or utilizing national budget allocations to adequately equip Ukraine for victory. The figure of 120 billion euros is estimated as the amount needed for Ukraine to successfully overcome the war, with the potential for Eurobonds to play a significant role in financing, leveraging the European Commission's capacity to raise funds from financial markets, backed by EU member states' guarantees. Estonia's officials have emphasized the importance of Western allies investing 0.25% of their GDP into military aid for Ukraine, based on a strategy developed by the Estonian Ministry of Defense. This investment would primarily focus on defense equipment and ammunition, potentially enabling Ukraine to effectively counteract Russian forces by 2025. However, the impact of such financial inflows would likely be observed almost a year after their initiation. This proposal comes amidst discussions on increasing military support for Ukraine, including the Czech Republic's plan to supply Ukraine with 800,000 units of artillery ammunition, expected to commence as early as June this year.

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