The EU is considering setting up a “solidarity fund” to provide basic services to Ukraine

That European Union is considering setting up a solidarity fund for Ukraine to help provide basic services in the country and meet the immediate needs of its citizens, European Council President Charles Michel said on Friday.

Ukraine has been cut off from international financial markets due to the Russian invasion, and the fund can provide the country with sufficient financial support to keep government services running, continuing defense efforts to provide basic services.

Michel said in a tweet: “The fund will provide liquidity for continued support to the authorities and in the long run serve as the backbone of the reconstruction of a free and democratic Ukraine when hostilities stop.”

He added that partners could contribute to the fund through an international donor conference.

An EU official said the issue would be discussed at a summit between EU leaders next week, adding that presidents had discussed the need for Ukraine to retain access to international financial support to finance imports of basic necessities and military equipment. .

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The Russian invasion has cut Ukraine off from international financial markets, and the fund can provide the liquidity needed to keep government services afloat, continue defense efforts and provide basic services, the official said.

EU officials are also reportedly discussing the possibility of using assets from sanctioned Russian tycoons to help fund Ukraine’s war recovery efforts, it is claimed.

Sources told Bloomberg that the idea is at a very early stage and no decision has been made.

Options reportedly being considered include the use of the assets to fund war reparations.

The decision on how to handle the assets will ultimately be made by the member states, they added.

Asked about the proposals, Eric Mamer, spokesman for European Commission President Ursula von der Leyen, said: “At this point, assets are only frozen,” adding “the president has not asked for this to be explored”.

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