European Commission plans €1.8 billion of further macro-financial assistance to Ukraine

The European Commission announced yesterday a further package of €1.8 billion in macro-financial assistance (MFA) to Ukraine in a bid to help the country’s balance-of-payments problems. The move is now pending approval from the European Parliament and Council of Ministers of the EU.

The package, set for implementation in 2015 and early 2016, aims to assist Uklraine in carrying out further fiscal consolidation, comprehensive reforms in its energy and banking sectors and improving overall macro-economic management as well as other capacity-building reforms – policies the European Commission considers as important for the country.

The disbursement of the funds is to be conditional on “Ukraine’s continuation of the IMF programme and the implementation of economic and financial policies in particular that the Commission – on behalf of the EU – and the government of Ukraine will agree on in a Memorandum of Understanding.”

"Ukraine is not alone. Europe stands united behind Ukraine and the reform agenda of the new government. Our actions speak louder than our words. The European Union has provided unprecedented financial support and today's proposal proves that we are ready to continue providing that support. Said European Commission President Jean-Claude Juncker at the EC meeting in Riga on 8 January.

If approved, this will be third MFA that Ukraine will receive since the onset of the crisis – a crisis-response instrument available to EU partner countries experiencing severe balance-of-payment problems. Alongside this, the EU has also been assisting Ukraine through trade preferences, humanitarian aid and budget support for reforms.

Press release