Kiev sets up $1.3bln compensation fund for damaged Ukrainian homes

By Al Mayadeen English
Source: Agencies
5 Feb 2023 16:53
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Ukraine is planning to grow the fund in the future.

Leader of the Servant of the People Ukrainian ruling party Olena Shuliak 19, June 2022 (EFE)

The Ukrainian government established a sovereign fund that aims to provide citizens with compensation for damaged property due to the ongoing war in the country.

Olena Shuliak, the head of the country's ruling party Servant of the People, announced on Sunday that this year, the fund will raise around $1.3 billion with future plans meant to grow the amount.

She noted that citizens eligible for the assistance are military personnel, people with disabilities, large families, and individuals serving as part of the country's mobilization plan.

Read more: US officials warn of fraud, waste in Ukraine funds

"A fund has been formed in Ukraine, which includes seized assets of a Russian bank … In the future, the fund will grow. Meanwhile, it is expected that the funds will amount to more than 50 billion hryvnias [$1.34 billion] this year, and all these assets will be used to compensate for damaged and destroyed housing for the country’s residents," Shuliak told the Ukrainian parliamentary broadcaster Rada.

The International Monetary Fund's (IMF) executive board accepted in October last year Ukraine's request for $1.3 billion in additional emergency money to help the country's economy, however, it is unknown whether this loan was used in the compensation fund announced today, given the massive sum of other financial assistance provided to Kiev by its western allies.

In mid-August of 2022, the Ukraine Support Tracker of the Kiel Institute for the World Economy reported that since the start of the war, Ukraine received more than $82 billion in aid from Western countries, however, the number surpassed $100 billion dollars as of January 2023.

Last December 10, the European Council announced that it approved a package of documents allowing the European Union to provide Ukraine with $18.9 billion of credit support throughout 2023 - in other words, a loan.

Following the EU loan to Ukraine announcment, The Washington Post reported on December 15 that tensions between Washington and Brussels are on the rise as the United States keeps pushing the European bloc to boost economic assistance to Ukraine.