STRASBOURG: The European Parliament on Tuesday approved a new 1.2-billion-euro ($1.36 billion) EU aid package for Ukraine as fears of a potential Russian invasion threaten its economy.
Lawmakers overwhelmingly backed the proposed assistance at an urgent vote after it was put forward last month by the EU’s executive. The bloc’s member states gave their consent on Friday.
The financing — set to be released in two tranches over 12 months — is part of efforts by Ukraine’s Western backers to support the country amid soaring tensions with Moscow.
The United States said Monday it could offer $1 billion in credit guarantees to help Ukraine weather the threat of war and Canada announced a fresh loan worth $400 million.
The Ukrainian government has been scrambling to prevent a serious hit to its economy in the face of dire Western warnings that over 100,000 Russian troops on its border could be about to invade.
Kyiv has been forced to pledge funds to try to keep its airspace open as it worries that investors could pull out.
Europe has been leading diplomatic efforts to ease the tensions, with German Chancellor Olaf Scholz holding talks with Russian President Vladimir Putin after visiting Kyiv.
Moscow on Tuesday signalled a potential de-escalation of the crisis by saying that some of its forces near Ukraine were beginning to return to their bases.
The EU has become an increasingly important financial backer for Ukraine as it turned Westwards after Moscow annexed the Crimea peninsula in 2014 and began fuelling a separatist conflict.
Lawmakers overwhelmingly backed the proposed assistance at an urgent vote after it was put forward last month by the EU’s executive. The bloc’s member states gave their consent on Friday.
The financing — set to be released in two tranches over 12 months — is part of efforts by Ukraine’s Western backers to support the country amid soaring tensions with Moscow.
The United States said Monday it could offer $1 billion in credit guarantees to help Ukraine weather the threat of war and Canada announced a fresh loan worth $400 million.
The Ukrainian government has been scrambling to prevent a serious hit to its economy in the face of dire Western warnings that over 100,000 Russian troops on its border could be about to invade.
Kyiv has been forced to pledge funds to try to keep its airspace open as it worries that investors could pull out.
Europe has been leading diplomatic efforts to ease the tensions, with German Chancellor Olaf Scholz holding talks with Russian President Vladimir Putin after visiting Kyiv.
Moscow on Tuesday signalled a potential de-escalation of the crisis by saying that some of its forces near Ukraine were beginning to return to their bases.
The EU has become an increasingly important financial backer for Ukraine as it turned Westwards after Moscow annexed the Crimea peninsula in 2014 and began fuelling a separatist conflict.
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