EU Commits €2.3 Billion for Ukraine's Reconstruction Amid Air Strikes

The European Commission unveiled a significant €2.3 billion aid package for Ukraine on Thursday, dedicated to rebuilding efforts following substantial destruction due to Russia's comprehensive invasion. This package comprises €1.8 billion in loan guarantees and €580 million in grants from an array of international and bilateral public financial bodies, announced EU Commission President Ursula von der Leyen at a conference held in Rome focused on Ukraine's redevelopment plans.

Concurrently, Ukraine endured another round of severe air attacks, as Russian drones and missiles targeted Kiev for the second consecutive day, leading to two fatalities. These events coincided with Ukraine's urgent appeal for crucial support from its international partners during the Roman meeting. The €2.3 billion aid forms part of the broader Ukraine Investment Framework, which von der Leyen indicated could potentially channel up to €10 billion in investments into Ukraine.

In a bid to further fortify Ukraine's economic stability, a new equity fund for reconstruction has been introduced, backed by the European Investment Bank along with France, Germany, Italy, and Poland. Initially seeded with €220 million, the fund aims to mobilize €500 million by the year 2026, as detailed by the Commission.

(With inputs from agencies.)