EUR 90 bln support package to cover two-thirds of Ukraine's financial gap identified by IMF – Dombrovskis

The proposed EUR 90 billion support package will cover two-thirds of Ukraine's financial gap, as calculated by the International Monetary Fund (IMF), noted European Commissioner for Economic Affairs Valdis Dombrovskis.

Dombrovskis said, speaking at the World Economic Forum in Davos on Wednesday that in a war situation, it's very difficult to plan ahead, so they need flexibility and the ability to quickly adjust aid levels to Ukraine's real needs.

He explained that the assessment is based on Ukraine's overall financing needs, which are determined jointly with the Ukrainian authorities, in particular the Ministry of Finance, and on the IMF's calculation of the financing gap, after which international donors must confirm their contributions.

The overall funding requirements cover both military and civilian expenditures, particularly related to the restoration of energy infrastructure following Russian attacks.

According to the European Commissioner, the EU is working to attract additional partners to support it, including international financial institutions, G7 countries, and other states. He clarified that the IMF has also been engaged and is preparing an $8.1 billion program, which is scheduled for review by the Board of Directors next month.

Dombrovskis outlined the approximate structure of the package at EUR 45 billion per year, of which two-thirds could be allocated to military support and one-third to budget support. However, he emphasized that, due to the high uncertainty of wartime, these proportions could be adjusted depending on Ukraine's needs.