(NEWSnet/AP) — On Feb. 1, European Union leaders finalized a deal to provide Ukraine with 50 billion euros ($54 billion) to repair its war-ravaged economy.

The aid package will not be used to fund arms and ammunition. Those are part of a separate EU plan. Instead, it aims to stabilize Ukraine’s economy after nearly two years of fighting, to pay for rebuilding and set the country for eventual EU membership.

The package is intended to help Ukraine plug budget gaps while avoiding inflation.

Ukraine has lost one-third of its economic output to wartime destruction and occupation by Russia.

As of Saturday, neither President Volodymyr Zelenskyy’s office nor Ukraine’s finance ministry have disclosed details of how funds will be spent. But statements by EU authorities, Ukraine lawmakers and diplomats have identified key areas of concern:

  • Paying state salaries and pensions: Compensation for teachers, doctors, nurses, civil servants and other public-sector employees.
  • Ensuring smooth power and water supplies, and keeping other public services running.
  • Supporting currency. Bohdan Yeremenko, a Ukraine lawmaker and former diplomat, told media he expects the government to use some of the funds to ease downward pressure on the hryvnia, saying it is essential for macroeconomic stability.
  • Safety net for foreign investments in Ukraine.

Zelenskyy welcomed the assistance. In a post on X, he said continued financial help from EU would strengthen Ukraine’s long-term economic stability, “which is no less important than military assistance and sanctions pressure on Russia.”

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