European Commission support to Ukraine

05 March 2014
by eub2 -- last modified 05 March 2014

The European Commission agreed on 5 March a package of support identifying a number of concrete measures to assist Ukraine economically and financially. These measures should be seen as the Commission's contribution to a European and international effort to support Ukraine's economic and political reforms, and will be presented to the EU Heads of State and Government ahead of their extraordinary meeting on Thursday 6 March.

The package of support to Ukraine sets out the main concrete measures that the Commission is proposing for the short and medium term to help stabilise the economic and financial situation in Ukraine, assist with the transition and encourage political and economic reform.

The Commission says this engagement constitutes both a response to help stabilise the country as well as to support the reform programme and further enhance ownership of the Ukrainian authorities. While some of these measures can be carried out quickly, others require further planning and preparation. For many of them, the urgent and active support of the Council and European Parliament are necessary.

Underpinning this approach is the ambition to help Ukraine fulfil the aspirations which have been clearly demonstrated by citizens and civil society in recent weeks in the unprecedented events in Kiev and throughout the country.

Key elements of the package agreed today:

• €3 billion from the EU budget in the coming years, €1.6 billion in macro financial assistance loans (MFA) and an assistance package of grants of €1.4 billion;
• Up to €8 billion from the European Investment Bank and the European Bank for Reconstruction and Development;
• Potential €3.5 billion leveraged through the Neighbourhood Investment Facility;
• Setting up of a donor coordination platform;
• Provisional application of the Deep and Comprehensive Free Trade Area when Association Agreement is signed and, if need be, by autonomous frontloading of trade measures;
• Organisation of a High Level Investment Forum/Task Force;
• Modernisation of the Ukraine Gas Transit System and work on reverse flows, notably via Slovakia;
• Acceleration of Visa Liberalisation Action Plan within the established framework; Offer of a Mobility Partnership;
• Technical assistance on a number of areas from constitutional to judicial reform and preparation of elections.