The EU is preparing a major aid package for Ukraine on the eve of the second anniversary of the full-scale invasion of the Russian Federation

The European Union is gearing up for additional sanctions against Russia and increased financial support for Kyiv on the eve of the second anniversary of Russia's full-scale invasion of Ukraine. The EU aims to counter the decline in Western aid to Ukraine. The Financial Times reports on the developments.

A diplomat involved in the negotiations noted that the aid package encompasses funds, weaponry, and fresh sanctions against Russia. According to sources, there's anticipation of a long-awaited agreement to allocate EUR 50 billion to Kyiv over the next four years, with a portion potentially disbursed after the agreement is finalized.

Money, weapons and new sanctions against Russia: The EU is preparing a large-scale aid package for Ukraine

The package also includes an annual military aid commitment of EUR 5 billion and the transfer of profits from Russia's frozen assets to Ukraine. Additionally, it encompasses the 13th set of sanctions targeting companies and individuals linked to Russia's full-scale invasion of Ukraine.

According to the FT, the new EU sanctions will primarily involve expanding the list of individuals and companies subject to asset freezes and travel bans. However, there is little likelihood of including a ban on Russian aluminum imports, as advocated by Poland and the Baltic countries.

The newspaper notes that certain aspects might be relaxed to garner support. For instance, previous attempts by some countries to direct the export of Russian nuclear fuel and liquefied natural gas to the EU failed due to a lack of consensus.

Negotiations are also underway on the reform of the European Peace Fund, which finances arms supplies to Ukraine. Discussions specifically focus on gradually eliminating compensation to capitals for weapons sent to Ukraine, replacing it with payments for the joint production of weapons.

The situation remains dynamic, and further developments are expected as negotiations progress.