Poland unblocks $19.2 billion Ukraine aid package

15 December 2022, 11:45 PM
Flag of Poland (Photo:Cragin Spring/flickr.com)

Flag of Poland (Photo:Cragin Spring/flickr.com)

The European Council has finally greenlit the EUR 18 billion ($19.2 billion) 2023 financial assistance package for Ukraine, after Poland retracted its tax-related objections, Politico reported on Dec. 15, citing three EU diplomats.

The sources told Politico that Poland has made concessions and is no longer vetoing the package. In addition to the macro-financial assistance for Ukraine, it included an EU-wide minimum corporate tax rate for large multinational corporations.

According to the report, Warsaw was wary of the minimum tax rate, which is part of a two-tier global deal struck by more than 130 countries in 2021. Part of the deal includes a redistribution of corporate taxation rights to countries where the profits were generated.

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Poland sought to split the package deal and postpone the tax rate floor, while supporting some other provisions – including the assistance to Ukraine. However, other EU leaders didn’t budge, and eventually Poland lifted its veto.

“According to our information, the macro-financial (aid) decision has already been unblocked and will be positive for Ukraine,” adviser to the Head of the Office of the President of Ukraine, Ihor Zhovkva, said in a Facebook post.

Previously, this package was blocked by Hungary, but its veto was overridden.

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