Aid to Ukraine was boosted by €70 billion in new commitments in September and October. That is mainly a result of European donor agreements to utilize profits from frozen Russian assets for financing budgetary aid. This has widened the gap between promised funds and allocated aid, and Europe must quickly convert the promised amounts into tangible assistance for Ukraine. At the same time, the outgoing administration of US President Joe Biden has recently made significant contributions to Ukraine in military aid, but the approved US funds for military support are now nearly exhausted. These are the findings of the latest update of the Ukraine Support Tracker, which records aid up to October 2024.
Currently, a significant gap exists on the European side between the committed €241 billion in aid and the €125 billion actually allocated. The US has already allocated €88 billion of its committed €119 billion.
The explanation for this gap on the European side lies in the substantial increase in aid commitments in October of around €52 billion, 35 from the EU and its institutions, intended for budget support to the Ukrainian government. The US has promised a good €18 billion for budget support.
The European commitments were made possible through new financial instruments (Extraordinary Revenue Acceleration Loans) secured by profits from frozen Russian assets. These new assets are primarily available to European donors and could help them compensate for the loss of US funds in the future.
“October’s increase in commitments reflects an important effort by the international community to secure long-term financial stability for Ukraine,” said Christoph Trebesch, head of the Ukraine Support Tracker at the Kiel Institute. “The use of frozen Russian assets demonstrates a practical approach to sustaining Ukraine’s economy and supporting its recovery amid ongoing challenges.”
Military aid: US funds coming to an end
When it comes to military support, a total of €7.9 billion in military aid was allocated in September and October. The bulk of this was provided by the US, which alone contributed €3.5 billion, and accompanies donations from the UK, Germany, and Norway. This highlights Biden’s efforts to bolster Ukraine’s military capabilities and meet its immediate battlefield needs before US political priorities may shift in 2025.
However, the funds pledged under Joe Biden have been nearly exhausted since the passage of the last aid package. The latest allocations leave the US with only about €6 billion in remaining funding capacity.
“President Biden’s administration continues to contribute to Ukraine’s military defense,” said Trebesch. “However, with the current funding due to end, all eyes are now on the incoming US administration and its willingness to support Ukraine.”
Source: Kiel Institute for the World Economy
