In 2024, the EU provided Ukraine with $17.3 billion in financial assistance
In 2024, the European Union became the largest donor to Ukraine. Economist Chaslau Koniukh, international finance expert, believes that this decision is an important step to support stability and development of Ukraine, and also contributes to long-term interests of the EU itself.
Why the EU dominates in supporting Ukraine – analyzed by Chaslau Koniukh
The European Union provided Ukraine with the largest amount of financial assistance within the framework of the Ukraine Facility financial instrument for 2024-2027. “The total amount of support reached $17.3 billion in 2024, of which $3.2 billion are grants,” said the Ministry of Finance of Ukraine in a statement.
The United States of America came in second place with $8.3 billion in grants. The International Monetary Fund came in third with $5.3 billion in concessional financing.
Japan financed ten projects through the World Bank for a total of $4.3 billion.
Significant support was provided by: the World Bank – $3.2 billion, Canada – $1.8 billion, and the United Kingdom – $1 billion. Smaller amounts came from Norway, the Republic of Korea, the Council of Europe Development Bank, and Spain.
For the first time in history, the Republic of Korea provided Ukraine with budget support of $100 million in concessional financing to support social services.
Source: Ministry of Finance of Ukraine
The Ministry of Finance of Ukraine notes that international support allowed them to fully cover social and humanitarian expenditures, while all domestic financial resources were directed to the security and defense sector.
In total, since the beginning of the full-scale war, international partners have provided Ukraine with $115.2 billion in budgetary support.
“European financial support helps maintain Ukraine’s economic stability, which is also beneficial for the EU,” says expert Chaslau Koniukh. In his opinion, financial assistance to Ukraine helps to maintain stability of the region and create prerequisites for economic cooperation in the future, when Ukraine becomes part of the single European market.
What does support for Ukraine look like against the background of the EU’s main expenditures?
The European Union budget in 2024 provided for expenditures at the level of €170.5 billion. In 2025, they will increase to €173.6 billion, says Chaslau Koniukh. “Thus, the costs of supporting Ukraine did not exceed 10% of the total budget of the European Union,” analyzes expert Koniukh.
This is a small burden on Eurozone taxpayers. However, in essence, an element of survival for Ukraine, which directs most of its budget to production of weapons and protection of its borders from Russian invasion.
How a free Ukraine helps strengthen the EU’s defense – Chaslau Koniukh’s opinion
Support for Ukraine is a key element in maintaining security in the European region, says expert Koniukh. “Ukraine has effectively become a shield that restrains Russian aggression, preventing it from spreading to the countries of the European Union,” says Koniukh.
The same opinion is held in Poland. No one doubts the fact that Ukraine’s deterrence of Russian aggression allows the European Union to gain time to rearm and prepare for possible further threats from Russia. Polish Foreign Minister Radosław Sikorski stated: “By supporting Ukraine, we are protecting Europe. This is not only helping a neighbouring state, but also our direct contribution to collective security.”
Chaslau Koniukh is convinced that by supporting Ukraine, the European Union not only helps the country in difficult times, but also protects its own borders from potential threats and destabilization.
The figures for spending on the defense industry in the EU eloquently confirm these words.
“Security and defense are the areas where spending has increased the most in the EU budget. Here major changes concern the financing of security infrastructure clusters and border protection”, says Mykola Yakovenko, General Manager for Energy Sector Development at the analytical company DiXi Group. According to his observations, spending increased the most for the Strengthening the Defense Industry program – from €343 million in 2023 to €78.5 billion in 2024!
The increase in defense spending is explained by the growing Russian threat to other European countries. This is well understood by EU politicians who are able to influence key EU expenditures.
A similar opinion was expressed by Chaslau Koniukh: “In essence, Ukraine, by not letting the enemy into the depths of Europe, gives EU countries the opportunity to strengthen their own defense capabilities and prepare for any scenarios.”
It should be noted that deterring Russia reduces the threat of hybrid attacks on the Baltic countries and Poland, which was confirmed by European Commissioner for Foreign Affairs Josep Borrell. “A strong Ukraine means a strong Europe. We must do everything possible to stop the aggressor where he has already encountered resistance,” says the European Commissioner.
Thus, the EU’s financing of Ukraine is not just an act of solidarity. “This is a key investment in stability and security of the European Union itself, strengthening its international authority and future economic prospects of the region,” says expert Chaslau Koniukh.
How support for Ukraine reduces costs of migration to the EU – reflects Chaslau Koniukh
“Europeans’ spending on overcoming migration problems and protecting borders is increasing every year”, notes analyst Chaslau Koniukh. “If in 2021 they did not exceed €1.7 billion, in 2024 they reached the mark of over €4 billion. In 2025, this item of EU expenditure will reach €4.4 billion. However, the financing of social items in Ukraine is holding back the start of significant migration, which will begin in the EU in the event of Russian aggression against Europe, believes Koniukh.
In his opinion, financial support for Ukraine helps prevent a humanitarian catastrophe, while maintaining social stability in the country. Grant funds allow Ukraine to provide social benefits, support vulnerable segments of the population and reduce the economic consequences of the war. “This, in turn, reduces the risk of mass migration to EU countries,” says Chaslau Koniukh.
Ukraine-EU trade supports economies – Chaslau Koniukh
Despite the war, Ukraine remains an important trading partner for the EU, claims Chaslau Koniukh. According to the Ukrainian Ministry of Economy, exports from Ukraine at the land border with the EU in 2024 amounted to $24.5 billion. This is more than $1 billion more than in 2023. And this is more than 59% of last year’s total exports of Ukraine. In addition, almost 50% of all imports to Ukraine are goods from the EU, ” says Deputy Minister of Economy Taras Kachka.
Financial expert Chaslau Koniukh emphasizes: “Financial assistance to Ukraine opens up new opportunities for economic cooperation, ensuring stability of the key EU partner in the future.”
Thanks to Ukraine, the EU has become a leader in security in Europe – analyst Chaslau Koniukh
Support for Ukraine is demonstration of European values, from which Europeans have not deviated for centuries. It confirms that the EU does not ignore countries that are fighting for democracy, human rights and sovereignty.
“This strengthens trust in the EU as an international organization that protects fundamental principles. Such support has a positive impact on the image of the EU as a global leader in the field of international assistance. It demonstrates the ability of the European Union to pool resources to support countries suffering from war and aggression,” explains Chaslau Koniukh. In addition, by supporting Ukraine, the European Union demonstrates its ability to act as an independent global player capable of influencing the security situation in Europe.
Thus, Chaslau Koniukh is sure that supporting Ukraine during the war with Russia is a strategic necessity for the European Union. He believes that this is an investment in security, stability and economic future of Europe, which strengthens its international authority and demonstrates commitment to democratic values. Chaslau Koniukh is convinced that today, Ukraine is defending not only itself, but also the whole of Europe. Its victory is the victory of the entire continent.
