Ukraine accuses Germany, other EU nations of blocking access to funds

by Akeem Alao B.
64 views

Ukraine has accused Germany and other EU nations of blocking funds the bloc previously approved for Kyiv as it faces a financial crisis caused by Russia’s invasion.

“We are expecting eight billion euros (8.2 billion dollars), but unfortunately certain EU states, including Germany, are blocking verification of this issue,” Ihor Zhovkva, deputy chief of staff in the presidential office said.

Mr Zhovkva said Ukrainian President Volodomyr Zelensky was conducting “active talks” on the matter.

The deputy chief of staff said Kyiv had received €1 billion of the €9 billion in financial aid pledged by the EU in May.

The European Commission said guarantees from member states might be needed for the remaining funds, as securing them through the EU budget was not possible due to a lack of resources.

A spokesman for Germany’s Ministry of Finance rejected Mr Zhovkva’s account, saying Berlin was not obstructing any aid to Ukraine.

“After the G7 meeting at Petersberg, Germany disbursed one billion euros to Ukraine,” he said. “Germany will also participate in further aid. The German government is engaged in dialogue with its European partners and the European Commission on this.”

The German official added that several international ratings agencies downgraded Ukraine’s credit rating in July” and the largest state-owned company, Naftogaz, failed to service outstanding foreign debts a week ago.

“It said it will default on servicing several Eurobonds as the Ukrainian government prioritises financing the military, pensions and other key needs,” the spokesman further stated. “Ukraine’s need for additional financing has been estimated by the presidential office at almost €50 billion for 2023.”

News Agencies

You may also like

Leave a Comment