Economy

On Tuesday (4 October), the European Union announced that it will integrate financial support to Ukraine into its 2023 budget, making its monetary contributions more structured and predictable, thus easing the economic pressures on war-torn Ukraine. The support payments will tighten the links between the EU and Ukraine, which got one step closer to achieving full EU membership after being granted candidate status earlier this year.  The decision to formalise the financial support was taken after criticism from the United States and others, who have accused the EU of delaying current support payments, and thereby raising doubts on how committed the EU is to Ukraine’s reconstruction after the war’s conclusion.  Out of the €9 billion promised in May this year, only €1 billion has so far been paid out, while the next payment of €5 billion is expected to reach Kyiv before the end of the year. Meanwhile, the United States has contributed over €10 billion in financial support, and over €25 billion in military aid to Ukraine since the beginning of the full-scale Russian invasion in late February. Financially, Ukraine is struggling significantly as a result of the ongoing war with Russia. Reports estimate that monthly foreign aid of approximately €5 billion is required for the Ukrainian economy to stay afloat. Oleg Ustenko, the economic adviser to Ukrainian President Volodymyr Zelensky, predicts that Ukraine’s deficit will shrink in the coming year to approximately €3.5 billion per month, as Ukraine has managed to resume initially disrupted economic activities in its western regions.

Disruption of Ukrainian grain exports is causing a global humanitarian food crisis. Measures need to be taken to create a humanitarian task force to ensure safe passage for export of Ukrainian grain to the rest of the world through the Black Sea and the Turkish Straits, argues Maximiliaan van Lange in this op-ed for commonspace.eu. Russia's blackmailing of the world with global hunger and food shortages among the world's poorest people must also be severely condemned by the international community. The current circumstances, in many ways, resemble the Holodomor, the Stalin-created famine in Ukraine in 1932-1933, that killed millions. The fact that Moscow is using grain as a weapon again in the twenty-first century is despicable and abhorrent. Global cooperation is therefore necessary to resolve this crisis, beginning with an internationally agreed humanitarian escort mission in the Black Sea, otherwise the consequences will be unforeseen.