Both the US and the International Monetary Fund have recently announced billions in additional aid to Ukraine. The IMF money is reportedly part of an ongoing loan program worth more than €15 billion. However, there is no agreement on guaranteed multi-year military aid from NATO countries.
In the run-up to a summit in Washington, the 32 allies could only agree on providing aid worth at least 40 billion euros in the coming year, the German Press Agency learned from several delegations.
Gross domestic product as a criterion for aid
According to the information, no concrete agreement could be reached on who contributes how much. The NATO states therefore only vaguely state that the gross domestic product should play a role.
Outgoing NATO Secretary General Jens Stoltenberg originally called on the Allies to guarantee Ukraine long-term military aid worth at least €40 billion a year. It is also about showing Russian President Vladimir Putin that he will not win his war of aggression against Ukraine, he explained at a meeting of foreign ministers from the 32 NATO countries in Prague in late May.
The figure of 40 billion euros would roughly correspond to the annual aid the Allies have received since the beginning of the Russian invasion. Asked how a fair burden-sharing could be ensured, Stoltenberg said at the time that one option would be to calculate the contribution of the individual member states on the basis of their gross domestic product.
Repayment freeze expires, Ukraine risks default
The British business magazine “The Economist” reported a few days ago about a possible bankruptcy of Ukraine in August. Several private investment companies then expect that the repayment of debts, which had been suspended at the beginning of the war, will be resumed. Kiev does not see itself in a position to do this and expects a reduction or at least a debt restructuring. According to calculations by The Economist, the country’s debt burden will rise to 94 percent of gross domestic product by the end of the year. In the eurozone, a maximum of 60 percent is considered stable.
Source: Krone
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