Ukraine Secures €90bn EU Loan, Boosts Military Pay Amid Manpower Shortage
Ukraine Secures €90bn EU Loan, Boosts Military Pay

Ukraine has secured a €90bn ($104bn) loan from the EU, enabling the government to increase defence spending to a record 4.4tn hryvnias ($97bn) this year. The funds are due to start flowing this month.

Wage Increases and Recruitment

President Volodymyr Zelenskyy confirmed that Ukraine will hike military wages and seek to recruit more fighters abroad as the army faces a manpower shortage after four years of war with Russia. After meeting key cabinet ministers on Friday, Zelenskyy stated: "We agreed on how to increase the financial resilience of our defence and further transformation of the Ukrainian army." He added that the cabinet will approve a specific mechanism, with the first new payments starting as early as June.

The basic military wage will be raised by one-third to 30,000 hryvnias ($700), matching the country's average monthly salary, which has risen during the war due to staff shortages. Infantry soldiers on the frontline will receive an average monthly salary of 300,000 hryvnias (about $7,000), up from the current 100,000 to 150,000 hryvnias. They will also be offered fixed-term contracts for 10, 14, or 24 months for combat duties.

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Kyiv aims to recruit more foreign volunteers. Zelenskyy instructed to create significantly more opportunities and channels for foreign recruitment. Since the war began, an estimated 10,000 foreign volunteers from over 70 countries have joined the Ukrainian army, according to Ukrainian military publications.

EU Membership Talks Advance

Ambassadors from the EU's 27 countries agreed on Friday to advance membership talks with Ukraine and Moldova, with the first phase of negotiations starting on Monday. Zelenskyy, who has made EU membership a key strategic goal, thanked the EU on Telegram, calling it "a strong step for Europe." He emphasized that Ukraine is fulfilling its obligations and that the EU is keeping its word.

Putin Responds to Drone Strikes

Russian President Vladimir Putin claimed that Ukraine's increasing drone strikes on Russia aim to "sow confusion" and inflict economic damage. Ukraine has been striking deeper into Russia, regularly targeting oil refineries and export hubs. Putin admitted to "economic damage" but insisted that "everything is quickly restored."

On Friday, Kyiv reported hitting a major oil refinery over 1,000km from the frontline. The governor of Russia's Bryansk region stated that one person was killed and another injured in a drone strike. Russia's defence ministry claimed that air defence units downed 185 Ukrainian drones over a 12-hour period across about a dozen regions.

UK Phases Out Russian Oil Products

Britain announced on Friday that a full ban on diesel and jet fuel made in Russia would be implemented by 2027, setting out a timeline to end a temporary licence for Russian oil products. The government stated that existing sanctions remain in place, with new sanctions being phased in. The business and trade ministry confirmed that the temporary licence for phasing in the ban will expire by 1 January.

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