The EU’s €100B Fund: Europe prepares a new mechanism to support Ukraine.

The European Union is considering establishing a new €100B fund that would provide long-term support to Ukraine amid its prolonged conflict with Russia. The proposal will be discussed as part of developing the new multiannual financial framework (MFF), which the European Commission will present on July 16. If the bloc’s member states agree to the initiative, the first payments to Ukraine could begin in 2028. This move could shift more financial responsibility for supporting Ukraine from the US to Europe.

Since the start of the full-scale war, the EU has already provided nearly €160B in aid to Ukraine. This includes a €50B fund offering grants and loans until 2027, and €50B from profits generated by frozen Russian assets. Like previous programs, the new fund may include grants and soft loans, mainly linked to Ukraine’s reforms toward EU membership. The EU is exploring various options for ongoing funding, particularly through profits derived from frozen Russian assets.

It is important to note that, according to European Commissioner for Economic Affairs Valdis Dombrovskis, the EU’s €6B financial aid package scheduled for delivery in December 2025 should help cover the remaining gaps in Ukraine’s budget needs at the start of next year.