Ukraine's accession could cost EU up to $204 billion: Study

Ukraine's accession to the EU could cost the bloc around €130 billion to €190 billion ($140 billion to $204 billion), according to a study by a German economic think tank.

According to the study by Institut der deutschen Wirtschaft (IW), up to 17% of the common budget of the association of states could flow into Ukraine.

The exact amount depends on the assumptions made about Ukraine's agricultural land and population, it said.

In its calculations, the institute assumes €70 billion to €90 billion in agricultural subsidies for the country.

Some €50 billion to €90 billion would be allocated to cohesion policy, the study authors wrote.

According to the study, these funds are intended to help structurally weak regions to grow in order to balance out economic and social differences in the European regions.

"In view of this volume, the EU should be prepared to reform itself," the study authors continue.

Only then can the political decision to bind Ukraine more closely to the EU with the prospect of accession be credible, the study continued. According to Economic experts, this applies to both the institutional and the fiscal level, i.e. the budget.

The authors of the study also suggest limiting cohesion spending to the poorer member states. The EU's multi-year budget from 2021 to 2027 is around €1.1 trillion.

The EU Commission recommended the opening of accession negotiations with Ukraine at the beginning of November this year. At the same time, however, the commission also called on Kyiv to complete reforms that have already begun.

A unanimous decision by all EU member states is required for accession talks to begin.