EU to pledge support for Ukraine but not discuss new Russia sanctions – Reuters

Dhwani Mehta FXStreet

Ahead of the summit between European Union (EU) leaders on Monday to discuss the Russia-Ukraine crisis, draft conclusions of the meeting, seen by Reuters, showed that the bloc’s leaders are set to discuss how best to aid Ukraine four months into Russia’s invasion and how to deal with the conflict’s impacts.

Key takeaways

“The most tangible will be the leaders’ political backing for a 9-billion-euro package of EU loans, with a small grants component to cover part of the interest, so that Ukraine can keep its government going and pay wages for around two months.”

“The draft summit conclusions showed EU leaders will back the creation of an international fund to rebuild Ukraine after the war, with no details, and want to look into the possibility of confiscating frozen Russian assets for that purpose.”

“The draft showed leaders are ready to explore ways to curb rising energy prices but there will be little in terms of new decisions on any of the main topics.”

Separately, German Economy Minister Robert Habeck said on Sunday, “After Russia’s attack on Ukraine, we saw what can happen when Europe stands united. With a view to the summit tomorrow, let’s hope it continues like this. But it is already starting to crumble and crumble again.”

Market reaction

EUR/USD is trading 0.22% higher on the day, at 1.0747, as of writing. The US dollar correction extends into a fresh week, as risk sentiment remains upbeat.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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