Washington Post: Tensions rise between the US and EU over Ukraine's economy

SARAJEVO, (Patria) - Tensions are rising between the United States and the European Union over Ukraine's economy, writes The Washington Post. Namely, the US is increasingly asking Europe to increase financial aid to war-torn Ukraine. At this week's meeting of finance leaders of the world's most powerful countries in Washington, US Treasury Secretary Janet Yellen spoke about this on several occasions.

The Washington Post writes that Yellen told her European counterparts that they need to "increase the speed and amount of money going to Ukraine." Ukrainian President Volodymyr Zelensky and Prime Minister Denys Shmyhal, who participated virtually in the World Bank meeting, supported her in this.

Major drop in Ukraine's economy

According to World Bank projections, Ukraine's economy will fall by 35% this year, and inflation could reach 40% early next year, which is close to so-called hyperinflation. Ukrainian exports have plummeted, as have tax revenues. Millions of people have fled the country, and Russian attacks have destroyed or damaged important infrastructure, including the power grid.

Zelensky stated at Wednesday's meeting that Ukraine needs $38 billion in urgent economic aid just for next year. This does not include the $350 billion that the World Bank estimates will be needed for Ukraine's recovery after the war ends.

It was announced this week that the European Union will donate another 500 million euros in aid to Ukraine, and since the beginning of the war, the EU has sent a total of slightly more than three billion euros to Ukraine - that is, about three billion dollars.

At the same time, the US has helped Ukraine with $8.5 billion and has pledged an additional $4.5 billion by the end of the year, writes The Washington Post, adding that the EU has pledged $11 billion and has so far sent only three billion.

US Secretary urged Europe to "step up"

"We call on our partners and allies to join us by quickly disbursing their existing commitments to Ukraine, but also by stepping up to help Ukraine with what it needs most and to help it rebuild and recover," said US Secretary Yellen.

An unnamed European official responded to the US calls. "The European Union is accepting millions of refugees from Ukraine and accommodating them on its territory. This should be taken into account when we talk about supporting and helping Ukraine," he said, adding:

"Also, the European Union is committed to the post-war reconstruction of Ukraine in the long term. This is not a race or a beauty contest. Helping Ukraine is in our key interest, and we are focused and doing everything we can to help defeat the aggressor and rebuild their country."