© Reuters. Flags of Ukraine fly in front of the EU Parliament building on the first anniversary of the Russian invasion, in Brussels, Belgium February 24, 2023. REUTERS/Yves Herman/File Photo
(Reuters) – Ukraine has received the last 1.5 billion euro ($1.65 billion)tranche from the 18 billion package from the European Union for 2023, Prime Minister Denys Shmyhal said on Thursday.
The country’s economy depends heavily on financial support from partners and Kyiv has been concerned whether it will continue as new packages have been blocked so far both in the EU and in the United States.
“Today we have received the last 1.5 billion euros of the 18 billion euro financial aid package. Hope for continued unwavering support from the EU,” Shmyhal said on the X social media platform.
This year the EU was the largest donor of direct budget support, covering more than 45% of the external financing needs, according to Finance Minister Serhiy Marchenko.
For 2024, Ukraine hopes to receive 18.5 billion euros from the EU and more than $8 billion from a U.S. package that also contains vital military assistance. Voting on both packages was moved to the beginning of the next year.
The country’s economy can weather the next few months until foreign aid arrives, but 2024 is certain to be tougher than this year and Kyiv will need to rely more heavily on its own resources.
The country managed to reduce 2024 external financing needs from an initial $41 billion to $37.3 billion, Marchenko said on Wednesday following measures to maximize budget revenues and activate the domestic debt market.
“While defense and security are financed at the expense of domestic budget revenues, we are counting on the help of international partners to meet the needs of the social sphere,” he said.
($1 = 0.9108 euros)
(This story has been refiled to fix a typo in paragraph 2)
