The EU Commission has announced that countries along the eastern border suffering from Russia's aggression will have access to low-interest loans, but no direct financial support from the EU is planned.
In response to the ongoing implications of Russia's invasion, the European Commission has committed to provide low-interest loans to countries situated along the EU's eastern border. Member states such as Finland can apply for these loans through the so-called Eastern Investment Instrument, which aims to assist areas severely impacted by the ongoing conflict. The loans will be available until the end of 2027, with a total of 28 billion euros earmarked for this financial support initiative.
The funding will primarily involve collaboration with the European Investment Bank along with other international and regional development banks. The goal is to facilitate access to financial resources for businesses operating in border areas that are struggling due to the consequences of the war. The specific terms of the loans will be clarified on February 26, when financial institutions are expected to finalize agreements related to this initiative. Notably, no new direct EU funding is planned for these regions, as the current EU budget extends only until the end of 2027 and is largely already allocated.
The Commission has identified nine countries that have been particularly affected by the war, including Finland, Poland, Estonia, Latvia, and Lithuania. The anticipation is that areas facing the most significant challenges due to the conflict will also see potential involvement from the World Bank. This strategic financial support appears aimed at mitigating the economic fallout for border communities while addressing the urgent needs resulting from the ongoing crisis in Ukraine.
