Finance Ministers of EU countries have agreed to transfer EUR5 billion in financial aid to Ukraine. The decision was taken during the ministers’ meeting in Prague. Czech FM Zbynek Stanjura, who informed on the decision, said that the aid will provide assistance to Ukrainian authorities in financing schools, hospitals and other state institutions in the face of the Russian invasion.

The aid will be granted in a form of a loan guaranteed by European Union member states. It is a part of the EUR9 billion support package for Ukraine approved back in May. The first EUR1 billion was transferred in August.

According to the statement issued by Mr Stanjura, payment of the remaining EUR3 billion will be agreed upon during the next meeting of EU Finance Ministers.

Before the meeting in Prague, payment of the financial support for Ukraine was blocked by Germany, claiming that Ukrainian authorities may not be able to repay the loans. Germany’s reluctance to unlock these funds caused a weeks-long impasse.

EUR5 billion in aid for Ukraine to be paid as long-term loans. The EU budget is going to cover interest rates and administrative fees. The funds will be covered through commercial loans on international markets.

The decision taken by EU Finance Ministers has yet to be approved by the European Parliament and the European Council before the funds are to be transferred to Ukraine.