EU provides Ukraine with another 4.2 billion euros in aid to prevent national bankruptcy
2024-08-07
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On the 6th local time, the European Union approved the first payment of 4.2 billion euros to Ukraine to support Ukraine's financial stability, etc.
It is reported that the funds are part of the EU's total 50 billion euros in aid and loans to Ukraine.
In addition, Ukraine also stated on the 5th that it had received US$3.9 billion in aid from the United States.
Screenshot of Reuters report
Zhang Hong, researcher at the Institute of Russian, East European and Central Asian Studies, Chinese Academy of Social SciencesIn an interview with a reporter from China Central Radio and Television's Global Information Radio, it was analyzed that the funds provided by the West to Ukraine are mainly used to ensure the normal operation of the Ukrainian state apparatus.
Western aid is intended to prevent Ukraine from experiencing extreme situations such as national bankruptcy, sovereign debt crisis, and paralysis of the state apparatus in the short term.
Since the outbreak of the Russian-Ukrainian conflict, Ukraine's annual fiscal deficit has reached more than 40 billion US dollars, and it mainly relies on financial aid from the West. Currently, one-third of the financial aid from the West to Ukraine is in the form of grants and two-thirds is in the form of loans.
As of the end of May this year, Ukraine's total national debt reached 151 billion US dollars. Despite signing a debt restructuring agreement with Western creditors, the debt repayment pressure is still very high, and international rating agencies have rated Ukraine's sovereign debt rating as close to bankruptcy level.
The Ukrainian government also has to pay salaries to doctors, teachers, government workers and other public sector workers to maintain the normal operation of the social mechanism. Due to the serious deficit in Ukraine's budget revenue, the West provides emergency financial assistance to Ukraine to ensure that the Ukrainian state machinery is not seriously paralyzed.
Screenshot of Reuters report
Recently, Ukraine has repeatedly expressed its willingness to resolve the conflict through negotiations.
Zhang Hong analyzed that since a political solution to the conflict is not in the interests of Western countries, they still provide financial and military assistance to Ukraine.
First, the United States and Europe will support Ukraine as an important part of isolating Russia diplomatically.
The West still adheres to the basic tone of no dialogue and no compromise with Russia in diplomacy. The Biden administration has recently insisted on adding fuel to the fire on the Ukraine issue and refused to have high-level interactions with Russia.
Second, providing military and financial assistance to Ukraine has become an important part of the Western security game against Russia.
The Russian-Ukrainian conflict is not only a local war between Russia and Ukraine, but also a geopolitical struggle between Russia and NATO over the global and European security order. Obviously, the West does not want Ukraine to lose, nor does it want Russia to achieve the expected victory.
In short, the West is still maintaining a tough stance, making it difficult for Russia-Ukraine peace talks to take place in the short term.
