EU provides Ukraine with EUR 600 M of macro-financial assistance

On December 9, the European Commission, on behalf of the European Union, provided Ukraine with EUR 600 million as part of the macro-financial assistance program related to the coronavirus pandemic. Ukraine is the seventh country to receive a tranche as part of an emergency package of macro-financial assistance to ten partner countries from the expansion and neighborhood of EUR 3 billion, the purpose of the support is to help them cope with the negative economic impact of the coronavirus pandemic. This tranche will help improve macro-financial stability in Ukraine. It will also enable it to allocate resources to mitigate the serious negative socio-economic impact of the pandemic. The macro-financial assistance tranche is a real demonstration of the EU’s solidarity with the country, which is its neighbor and partner. The Journalist reported this with reference to the press center of the EU Delegation in Ukraine.

The tranche is provided following the signing of the Memorandum of Understanding this summer and its ratification in mid-September. Its granting was also preceded by the restoration of Ukraine’s obligations to continue cooperation within the framework of the IMF program in recent weeks and commitment to the political program agreed with the EU. Given the emergency nature of this support, the first tranche does not depend on the fulfillment of any specific political conditions. The disbursement of the second tranche will be conditional on the implementation of eight specific activities outlined in the Memorandum of Understanding. These commitments include important steps in areas such as public financial management, improving the business climate and managing state-owned enterprises. The European Commission works closely with the Ukrainian authorities to ensure the timely implementation of the agreed political program.

Valdis Dombrovskis, Executive Vice President of the European Commission, said:

“Ukraine has a high priority on the European agenda. This is our neighbor country, and it belongs to Europe. We are committed to offering political, financial and technical support, especially during the crisis, in response to the coronavirus pandemic and to overcome its social and economic impact. This first tranche of emergency macro-financial assistance worth EUR 600 million confirms the solidarity of the European Union with Ukraine and our continued close cooperation. I express my best wishes to the government of Ukraine for 2021 to implement the reform program, improve living standards, as well as continue the fight against corruption and further bring Ukraine closer to the EU.”