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EU gives Ukraine EUR 1 billion in aid, calls for economic reforms

19 March 2014, 15:55 CET
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EU gives Ukraine EUR 1 billion in aid, calls for economic reforms

Commissioner Olli Rehn - Photo EC

(BRUSSELS) - The European Union announced 1.0 billion euros in emergency aid for Ukraine on Wednesday as it called for far-reaching economic reforms and a stepped-up fight against corruption.

With EU leaders to discuss a response to Russia's annexation of Crimea at a summit Thursday and Friday, the bloc detailed an initial 1.0 billion euros ($1.4 billion) in aid to help stabilise Ukraine's faltering economy.

The money is part of a wider aid package agreed earlier this month worth 11 billion euros which will run for several years.

While the focus has been on the recent "dramatic security and political developments, we should not forget that Ukraine's economic and financial situation has been deteriorating rapidly," EU Economic Affairs Olli Rehn said.

"Creating the conditions for economic stabilisation is an essential step in order to help Ukraine to stabilise the political situation."

Alongside the 1.0 billion euros, the EU is also making available another 610 million euros under the terms of an EU Association Accord which now-ousted pro-Russian president Viktor Yanukovych ditched in November.

EU leaders are due to sign the political chapters of the EU accord with Ukraine's new pro-European government on Friday, having already granted tariff cuts worth 500 million euros agreed in an accompanying free trade agreement with Kiev.

Rehn said the 1.0 billion euros will go to meet Ukraine's immediate financial needs but are also "aimed at supporting economic reforms."

These reforms should improve overall management of the economy, thereby helping growth and the public finances, and boost the fight against corruption, Rehn said.

He singled out electricity costs as one example of needed reform, saying massive government subsidies put great pressure on public finances.

Ukrainian citizens had been calling for such changes "for so many months and so many years," he added.

Macro-Financial Assistance to non-EU countries


Document Actions

Aiding Ukraine it's like flogging a dead horse.

Posted by Moris at 25 March 2014, 12:24 CET
Aiding Ukraine it's like flogging a dead horse. For many previous years they received billions of aid but did they use any to strengthen their economy? Obviously not and today Ukraine is the worst place to invest because economic dislocation is what Ukraine is about today. We can give it billions and billions but I guess nothing will change there. Today capital leaves Ukraine because revolutionaries smash up cities and capture businesses. And no one will invest today into Ukraine against the background of never ending anarchy there. So from my point of view providing Ukraine with such significant aid is just a waste that won't help Ukraine and will hit European economy.

Aid

Posted by Stoyan Antonov at 30 March 2014, 01:37 CET
EU and USA aided for decades Turkey and Greece and some others - and with much more then one billion, so why Ukraine should not receive EU funding? In what way they are worse then Greeks and Turks? Also Crimea was initially partly inhabited by old Greeks (not Hellenized Romans), after that old Bulgurs lived there for many years, after that in about mid 13 century it was conquered by Muslim Tatars, who did not work on land or did not trade - but mostly lived on stealing and fighting their neighbours, and finally Crimea became Russian as Ekaterina The Great (The Daughter of Germany' Kaiser) managed to gradually take it. Nowadays Crimea is a crossing point for gas pipes, a very important Russian military base - a very flammable land. I think some interest groups try to remove Russia from EU's energy markets - and to promote natural gas supply from Azerbaijan and Middle Asia.They did just the same in Irak - removed Russians and some others from the oil fields, but this time it is not going to work.
I do not believe mid-class Americans care much of Ukraine - and many even do not know what Crimea is - and might be wondering why this land locate as far as 10000 kilometers from USA is so important for USA?
Is this good for EU