ECOFIN meeting: discussions on additional financial support to Ukraine
On 9-10 October, Vice-Minister of Finance Januš Kizenevič will participate in the meetings of the Eurogroup (EG) and the Council of Ministers for Economic and Financial Affairs of the European Union (EU) (ECOFIN) in Luxembourg, where the main focus will be on discussions on EU financial support to Ukraine, the new EU tobacco directive, and the introduction of new EU own resources.
The participants of the meeting will discuss the economic and financial impact of Russia's aggression against Ukraine, further support to the country at war through the use of Russia's frozen assets.
"Considering the growing external financing needs of Ukraine due to Russia's attacks, we welcome the concept of Reparation loans to UA proposed by the EC, according to which Ukraine would be provided with additional financing based on Russia's frozen assets. We hope that the EC will soon submit appropriate legal proposals in order to take timely decisions. It is important to ensure that as many G7 countries as possible apply unified decisions, and that Russia's assets remain frozen until it ends the war against Ukraine and pays all compensation for the damage caused", Vice-Minister of Finance J. Kizenevič emphasized.
The ECOFIN meeting will also hold a policy debate on the amendments proposed by the European Commission to the Council Directive on the structure and rates of excise duties on manufactured tobacco and tobacco-related products. The directive aims to ensure the proper functioning of the domestic market and a high level of protection of human health, to strengthen the fight against fraud and tax evasion and to protect the revenue of the Member States. The European Commission proposes to fundamentally change the principle of calculating minimum excise duties, taking into account the purchasing power of individual countries, and to provide for significantly higher EU minimum excise duties on manufactured tobacco (cigarettes, cigars, heated tobacco, etc.). The directive also includes new products – heated tobacco products, e-cigarette liquid, nicotine pouches and other nicotine products.
“Some of the provisions of the current Directive are outdated and no longer fit for purpose – they do not cover new tobacco products that have appeared on the market, therefore we support the aim of harmonizing the definitions of tobacco, tobacco-related products and raw tobacco and their taxation by including new products in the scope of the Directive – e-cigarette liquid, heated tobacco products, nicotine pouches and other nicotine products and raw tobacco. However, due to the geographical proximity to third countries where excise duties are significantly lower, we have reservations about a significant increase in minimum excise duty rates for cigarettes and smoking fine tobacco”, Vice-Minister of Finance J. Kizenevič stated.
At the ECOFIN meeting, EU finance ministers and vice-ministers will also discuss the European Commission’s proposal on the European Union’s own resources system. The European Commission proposes to introduce 5 new own resources (ORs): an OR based on the EU Emissions Trading System (ETS1), an OR based on the Carbon Border Charging Mechanism (CBAM), an OR based on uncollected e-waste, an OR on tobacco excise duties and an OR for large companies with an annual turnover exceeding EUR 100 million.
"Lithuania may consider possible new EU own resources if the EU budget is indeed significantly increased, as proposed by the European Commission. If it turns out during the negotiations that the volume of the EU budget will remain similar to the current one, then we do not see the need for new resources, whereas the current system also works well, is transparent and properly distributes the burden among EU Member States. As for possible new own resources, it is important that they generate new revenue, and not simply redistribute funds from national budgets to the EU budget", Vice-Minister of Finance J. Kizenevič noted.
Moreover, the meeting will hold a political debate on the Commission's recommendation on the savings and investment account and adopt conclusions on climate change financing in preparation for the United Nations (UN) Climate Change Conference (COP 30) 2025. Germany's medium-term fiscal framework plan (FSP) and national escape clause (NEC) for defence spending, as well as the revised Spanish Recovery and Resilience Plan (RRP) will also be approved.
The Eurogroup meeting will include an exchange of views on the macroeconomic situation in the euro area and exchange rate developments in preparation for international meetings and will discuss progress made in the area of EU capital markets at national and EU level.
The meeting will discuss trends in stablecoins and their impact on the financial system. The preparations for the Euro Summit to be held on 23 October will also be discussed.
Last updated: 09-10-2025
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