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Tuesday, July 23, 2024

EU disburses €600 million in macro-financial assistance to Ukraine

The European Commission, on behalf of the EU, has today disbursed €600 million to Ukraine under its COVID-19 related macro-financial assistance (MFA) programme. Ukraine is the seventh country to receive a disbursement from the €3 billion emergency MFA package for ten enlargement and neighbourhood partners, which aims to help them limit the economic fallout of the coronavirus pandemic. This disbursement will contribute to macro-financial stability in Ukraine while allowing it to allocate resources towards mitigating the severe negative socio-economic consequences of the coronavirus pandemic. It represents a tangible demonstration of EU solidarity with its neighbour and partner.

The disbursement follows the agreement of a Memorandum of Understanding (MoU) this summer and its ratification in mid-September as well as Ukraine’s renewed engagement to continue cooperation under the IMF programme in recent weeks and commitment to the policy programme agreed with the EU. Given the emergency nature of this support, the first disbursement is not conditional on the fulfilment of any specific policy conditions. The disbursement of the second tranche will be conditional on fulfilling the eight specific measures laid down at the MoU. These include measures in the areas of public finance management, the fight against corruption, improving the business environment and the governance of state-owned enterprises. The Commission is working closely with the Ukrainian authorities on the timely implementation of the agreed policy programme.

Executive Vice President Valdis Dombrovskis said: “Ukraine remains high on the European agenda. It is our neighbourhood country and it belongs to Europe. We are committed to offering political, financial and technical support, especially during this time of crisis as response to COVID-19 pandemic and overcome the social and economic consequences. This €600 million first tranche of emergency macro-financial assistance confirms the EU’s solidarity with Ukraine and our continued close cooperation. I offer my best wishes to Ukraine’s government for 2021 in carrying through its reform agenda, to improve living standards, continue fighting against corruption, and bring Ukraine closer to the EU.”

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