The European Commission has prepared a new draft proposal for providing financial assistance to Ukraine in the amount of 8 billion euros in the form of grants and loans.

Writes about it Politico referring to EU officials, Ukrinform reports.

The European Union will allocate up to 5 billion euros in the form of long-term loans guaranteed by the EU countries – in accordance with their contribution to the EU budget. Interest payments will be paid from the EU budget. The rest, about 3 billion euros, will be provided in the form of grants.

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The new project came after Germany refused to provide guarantees of up to 9 billion euros for loans to Ukraine. Berlin argues that it is better for Kyiv to provide grants because it is already heavily indebted. Germany itself provided a grant of 1 billion euros.

Although no timeframe has yet been set, the EC intends to get approval from the European Parliament and the EU countries in September in order to start paying in October.

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President of Ukraine Volodymyr Zelensky in his nightly address reproached the EU for the delay in providing funds.

Back in May, EU leaders promised Kyiv up to 9 billion euros in macro-financial assistance. But so far, the European Commission has been able to allocate only 1 billion in loans secured by the EU budget.

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Because of the war, Kyiv is experiencing a budget deficit of about $5 billion a month. Ukraine has turned to international donors for help to cover basic costs such as pensions and public sector salaries.