EU tables EUR 1.2 bn emergency aid package for Ukraine
Dombrovskis - Shmyhal - Photo Aleksey Filippov - © European Union 2022
(KIEV) - The European Commission tabled a proposal Tuesday for a new emergency macro-financial assistance (MFA) programme for Ukraine of up to EUR 1.2 billion, following a request from Ukrainian authorities.
MFA funds will be made available to Ukraine in the form of long-term loans on highly favourable terms. They will contribute to enhancing Ukraine's macroeconomic stability and overall resilience in the context created by the sharp increase in geopolitical uncertainty and its impact on the economic situation.
A swift adoption of this proposal by the Council and the European Parliament will allow the Commission to immediately disburse a first tranche of €600 million to Ukraine. The second tranche will be disbursed following a positive assessment of progress made by the Ukrainian authorities with the implementation of a limited number of agreed short-term policy measures.
"The EU has been a steadfast supporter of Ukraine and we are today stepping up our assistance for the country and its people," said EC vice-president Valdis Dombrovskis: "Our new macro-financial assistance package will help Ukraine to address its financing needs due to this very challenging time."
The EU has provided significant assistance to Ukraine to support its 'resilience and modernisation', and specifically to fight the COVID-19 pandemic. Since 2014, the EU and its financial institutions have allocated more than EUR 17 billion in grants and loans to Ukraine, to which the EU continues to provide political, financial and technical support.
In parallel to today's proposal, the Commission has also decided to significantly increase the bilateral assistance it provides Ukraine in grants in 2022. This support is aimed at helping to strengthen Ukraine's state-building and resilience efforts, thus complementing the MFA in helping underpin the country's overall stability.