European Commission president announces further 6 bln euros in financial aid for Ukraine

BRUSSELS. Nov 13 (Interfax) - The European Commission will provide around 6 billion euros to Ukraine on Thursday under the Ukraine Facility and the Extraordinary Revenue Acceleration mechanism of the G7 and EU, European Commission President Ursula von der Leyen said.

Speaking at a plenary session of the European Parliament in Brussels, von der Leyen welcomed "the European Council's very clear commitment to cover Ukraine's financial needs for the next two years."

"We are now working closely with Belgium, and all member states, on options to deliver on this commitment," she said.

Von der Leyen also unveiled financial support options for Kiev on which the European Commission is working now. These include using the budget's headroom to raise money on capital markets, member states raising the necessary capital by themselves under an intergovernmental agreement, and having a reparations loan based on immobilized Russian assets.

"Taking the cash balances from the immobilized Russian assets, hand them to Ukraine as a loan - and Ukraine has to pay back this loan if Russia pays reparations. This is the most effective way to sustain Ukraine's defense and its economy [...] We will show that, if needed, we are in this for the long haul," von der Leyen said.

European Commissioner for Economy and Productivity Valdis Dombrovskis said at a press conference in Brussels on Wednesday after a Eurogroup meeting that the deplorable state debt sustainability in Ukraine does not allow the EU to continue providing regular loans to Kiev.

"From the European Commission side, we continue this work. Also we continue engagement with Belgian authorities to address concerns they have in relation with reparation loans. We also looking at other possible options as tasked by the European Council," Dombrovskis said.

Ukraine is facing a very sizeable funding gap, he said.

The issue of debt sustainability in Ukraine is a matter of concern both for the EU and the International Monetary Fund, Dombrovskis said.

Russian officials have repeatedly said they viewed the possible confiscation of immobilized assets as theft, which would not go unanswered.