Europe’s role in supporting Ukraine

Since Russia's full-scale invasion of Ukraine in 2022, Western countries have poured over €200 billion into financial, humanitarian, and military aid. While the United States has contributed significantly—mostly in military support—the European Union has taken the lead in financial assistance, ensuring Ukraine's government and economy can function.

But with growing uncertainty over U.S. support, European nations must shoulder a larger responsibility. If Europe fails to step up, the consequences could be dire. A Russian victory wouldn’t just devastate Ukraine—it could destabilize the entire European security order, trigger new waves of migration, disrupt global trade, and force European countries to drastically increase military spending.

The policy brief compares Ukraine aid to past financial commitments, such as pandemic relief and energy subsidies. While supporting Ukraine has required substantial funds, these sums are still far smaller than the economic responses to other crises, raising the question: does Europe fully grasp what’s at stake?

Key highlights

• The cost of inaction is greater than the cost of aid. If Russia wins, European nations will face skyrocketing defense costs, economic instability, and a weakened security landscape. Studies suggest that the long-term financial impact of stopping aid would be 10–20 times greater than continuing support.
• Europe has the capacity to support Ukraine—if the political will exists. Russia is heavily investing in its war economy, but the EU’s GDP is ten times larger. Matching Russia’s war spending would require only 0.6–0.7% of the EU’s GDP—an affordable price for European security.
• Public support for Ukraine remains strong. Surveys show that most Europeans approve of current aid levels, and many favor increasing support. This contradicts the idea that financial assistance to Ukraine lacks public backing.

Meet the authors

• Torbjörn Becker: Director of the Stockholm Institute of Transition Economics (SITE), Stockholm School of Economics (SSE)
• Anders Olofsgård: Co-deputy Director of SITE; Associate Professor at SSE
• Maria Perrotta Berlin: Assistant Professor at SITE, SSE
• Jesper Roine: Co-deputy Director of SITE; Adjunct Professor at SSE

Photo: Anna Pasichnyk, Shutterstock