EU Eyes Debt and Crops to Finance Ukraine’s Reconstruction

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

Ukraine faces a mammoth effort to rebuild following Russia’s destructive invasion. The bill could surpass half a trillion dollars, the government has said. The bulk of the funds will come from the EU, with the Commission due to present a plan next week. One of the ideas being considered is a new issuance of EU debt as the bloc did for the post-pandemic recovery fund. “We are considering all options,” Commissioner Oliver Varhelyi said yesterday. Alongside the recovery debate, the bloc is concerned about the $15 billion the country needs over the next three months. Brussels could provide up to $9 billion, we’re told, but member states should offer guarantees. For the time being, the Commission approved the release of 600 million euros. Additional resources could come from Ukraine’s food exports. Today, the Commission will consider a plan to facilitate the shipping of 25 million tons of crops stuck in the country due to Russia’s Black Sea blockade.