European Commission President Ursula von der Leyen after the EU leaders' summit in Brussels, Belgium, on Thursday. Reuters
European Commission President Ursula von der Leyen after the EU leaders' summit in Brussels, Belgium, on Thursday. Reuters
European Commission President Ursula von der Leyen after the EU leaders' summit in Brussels, Belgium, on Thursday. Reuters
European Commission President Ursula von der Leyen after the EU leaders' summit in Brussels, Belgium, on Thursday. Reuters

EU agrees on global tax rate, sanctions and $19bn Ukraine assistance package


Soraya Ebrahimi
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The EU approved a €18 billion ($19 billion) aid package for Ukraine on Thursday and agreed on a minimum corporate tax after last-minute Polish objections held up a deal, diplomats said.

The announcement came after an impassioned plea from Ukrainian President Volodymyr Zelenskyy not to let internal disputes within the 27-nation bloc stand in the way of backing Kyiv.

"I am asking you very much to ensure that our struggle for peace for Ukraine and for the whole of Europe does not depend on misunderstandings and controversies between some EU member states," Mr Zelenskyy said in a video address to EU leaders meeting in Brussels.

The member states struck a complex agreement on Monday that gave approval to the Ukraine aid and a minimum 15 per cent global corporate tax rate.

The "megadeal", which included a compromise with Hungary over frozen EU funds, was formally expected to be approved on Wednesday evening.

But repeated deadlines to ratify the package slipped by after Warsaw raised objections to the tax push.

The delay meant the dispute spilled over into the EU leaders summit.

Diplomats said an accord was eventually reached after Poland agreed to let the initiatives go through.

French President Emmanuel Macro hailed a "major breakthrough". "We are very keen on upholding social justice and the ability to tax all economic actors at a minimum level of 15 per cent," he told reporters at the exit of the summit.

Ukraine war latest - in pictures

  • The coffin of Valeriy Krasnyan is brought out of St. Michael's Golden-Domed Monastery in Kyiv. Getty Images
    The coffin of Valeriy Krasnyan is brought out of St. Michael's Golden-Domed Monastery in Kyiv. Getty Images
  • Repairmen work near a residential building damaged following a missile attack in Vyshgorod, outside of Kyiv. AFP
    Repairmen work near a residential building damaged following a missile attack in Vyshgorod, outside of Kyiv. AFP
  • An elderly man walks in front of a residential building damaged following a missile attack in Vyshgorod. AFP
    An elderly man walks in front of a residential building damaged following a missile attack in Vyshgorod. AFP
  • A boy kisses a dog while he charges his phone at the heating tent dubbed a Point of Invincibly in Bucha, Ukraine. AP
    A boy kisses a dog while he charges his phone at the heating tent dubbed a Point of Invincibly in Bucha, Ukraine. AP
  • A couple uses a laptop in the heating tent. AP
    A couple uses a laptop in the heating tent. AP
  • Workers dig out a tire from the rubble of a destroyed storage building at a grain processing center so they can use it for repairs in Siversk, Donetsk region. Reuters
    Workers dig out a tire from the rubble of a destroyed storage building at a grain processing center so they can use it for repairs in Siversk, Donetsk region. Reuters
  • The Chernihiv region found itself on the frontline of Russia's invasion in February, when Moscow's forces were attempting to quickly seize Kyiv. Getty
    The Chernihiv region found itself on the frontline of Russia's invasion in February, when Moscow's forces were attempting to quickly seize Kyiv. Getty
  • Russia ultimately retreated from northern Ukraine to focus its attack on the east and south. Getty
    Russia ultimately retreated from northern Ukraine to focus its attack on the east and south. Getty
  • The city of Chernihiv on November 28, 2022 in Chernihiv, Ukraine. Getty
    The city of Chernihiv on November 28, 2022 in Chernihiv, Ukraine. Getty
  • A worker fits in new windows of a building in Chernihiv. Getty
    A worker fits in new windows of a building in Chernihiv. Getty
  • People receive food from AFAT - Disaster and Emergency Management Presidency in Chernihiv. Getty
    People receive food from AFAT - Disaster and Emergency Management Presidency in Chernihiv. Getty
  • The people Chernihiv queue up for hot food. Getty
    The people Chernihiv queue up for hot food. Getty
  • Oleksandr Antonenko stands on a balcony of his apartment damaged by a recent Russian military strike in Kherson. Reuters
    Oleksandr Antonenko stands on a balcony of his apartment damaged by a recent Russian military strike in Kherson. Reuters
  • Mr Antonenko and his mother Liudmyla inside their apartment recently damaged by a Russian military strike in Kherson. Reuters
    Mr Antonenko and his mother Liudmyla inside their apartment recently damaged by a Russian military strike in Kherson. Reuters
  • A woman walks in an underpass in Kyiv, on November 26, 2022. AFP
    A woman walks in an underpass in Kyiv, on November 26, 2022. AFP
  • Friends hug after the arrival of a train in the southern city of Kherson. Getty
    Friends hug after the arrival of a train in the southern city of Kherson. Getty
  • Residents sort through donated clothing at an aid centre in Kherson. Getty
    Residents sort through donated clothing at an aid centre in Kherson. Getty
  • A Ukrainian soldier stands with a machinegun near Liman in the Donetsk region. AP
    A Ukrainian soldier stands with a machinegun near Liman in the Donetsk region. AP
  • Children attend a physical education class at Spilno School in Kyiv. Getty
    Children attend a physical education class at Spilno School in Kyiv. Getty
  • A woman embraces her friend, a soldier in the Ukrainian army, in Kherson. AFP
    A woman embraces her friend, a soldier in the Ukrainian army, in Kherson. AFP
  • Residents inspect a crater left by a Russian military strike in the village of Komyshuvakha in the Zaporizhzhia region. Reuters
    Residents inspect a crater left by a Russian military strike in the village of Komyshuvakha in the Zaporizhzhia region. Reuters
  • Resident Tetiana Reznychenko walks past a work by world-renowned graffiti artist Banksy, on the wall of a destroyed building in the Ukrainian village of Horenka. Reuters
    Resident Tetiana Reznychenko walks past a work by world-renowned graffiti artist Banksy, on the wall of a destroyed building in the Ukrainian village of Horenka. Reuters
  • Ukrainian soldiers fire artillery at Russian positions near Bakhmut in the Donetsk region. AP
    Ukrainian soldiers fire artillery at Russian positions near Bakhmut in the Donetsk region. AP
  • A fisherman sails his boat on the Dnipro as black smoke rises from an oil reserve in Kherson. AFP
    A fisherman sails his boat on the Dnipro as black smoke rises from an oil reserve in Kherson. AFP

Warsaw, one of the most hawkish supporters of Ukraine in the EU, had insisted it was firmly in favour of the 2023 financial aid for Kyiv.

But Prime Minister Mateusz Morawiecki said it was "blackmail" for other countries to maintain the money for Ukraine could only be agreed to if the corporate tax deal went through.

Poland is trying to persuade the EU that it has made enough progress on reforms to justify it starting to receive $35 billion in post-Covid recovery funds.

The desperately needed funds will help to prop up the Ukrainian government next year as its struggles to keep services going during Russia's war.

Ukraine becomes dark patch in night satellite images - in pictures

  • A satellite image showing the night radiance of Europe from space on November 23 shows Ukraine in almost total darkness. Photo: Nasa
    A satellite image showing the night radiance of Europe from space on November 23 shows Ukraine in almost total darkness. Photo: Nasa
  • People walking in the dark city centre of Kyiv which lost electrical power after Russian rocket attacks. AP
    People walking in the dark city centre of Kyiv which lost electrical power after Russian rocket attacks. AP
  • A man using a head torch to make his way around Kyiv. AP
    A man using a head torch to make his way around Kyiv. AP
  • An unlit street following missile strikes in Kyiv. Getty Images
    An unlit street following missile strikes in Kyiv. Getty Images
  • People charge their devices using a power generator in Kyiv. EPA
    People charge their devices using a power generator in Kyiv. EPA
  • Since October, Russia has launched regular strikes on the Ukrainian power grid. AP
    Since October, Russia has launched regular strikes on the Ukrainian power grid. AP
  • People sit in candlelight in Lviv. Reuters
    People sit in candlelight in Lviv. Reuters

In another disagreement, Poland and Lithuania were objecting to a new package of sanctions against Russia over the war in Ukraine, saying other EU nations had tried to dilute it too much.

Eastern European officials said attempts by coastal states including Belgium and the Netherlands to retreat on restrictions on Russia selling fertiliser would weaken EU attempts to punish the Kremlin.

EU sanctions do not target Russian fertiliser and grain, but they reportedly discourage shipping companies from transporting all Russian cargo.

UN Secretary General Antonio Guterres had asked European leaders to ease up up on fertilisers to not endanger food security in Africa, whic imported 44 per cent of their wheat from Russia and Ukraine between 2018 and 2020, according to UN figures.

Mr Macron said that they had responded to Mr Guterres' request and that the sanctions "impacted [Russia's] ability to finance its war effort and at the same time do not damage food security for many developing and emerging countries."

Mr Macron also said that he would speak to Russian President Vladimir Putin soon and that discussions would focus on calling on Russia to stop targetting Ukrainian civilian targets with bombardments and drone attacks.

The French President also wants to convince Russia to withdraw weaponry and infantry from Ukrain's Zaporizhia nuclear power plant. "We are quite close to obtaining this," he said.

EU proposes special court to investigate Russia's actions in Ukraine - video

Updated: December 16, 2022, 10:50 AM