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The European Commission today disbursed €300 million in emergency macro-financial assistance (MFA) to Ukraine. The disbursement of funds has been accelerated to help strengthen Ukraine’s macroeconomic stability in the context of Russia’s unprovoked and unwarranted invasion.
This is the first part of an initial €600 million tranche under Ukraine’s new €1.2 billion emergency MFA program. Another €300m payout is expected to take place next week. The program represents a concrete demonstration of the EU’s unwavering support to Ukraine.
The payment comes after the Commission’s proposal for a new emergency program was swiftly adopted by the Council and the European Parliament. The remaining funds (€600 million) will be disbursed later this year, in accordance with the Memorandum of Understanding signed by the EU and Ukraine.
Alongside the implementation of the emergency MFA programme, the Commission is preparing an additional MFA program to further support Ukraine in the longer term, as announced by the President von der Leyen at the end of January.
The EU has already provided significant assistance to Ukraine in recent years. Since 2014, the EU and European financial institutions have allocated over €17 billion in grants and loans to the country. This figure includes the provision of €5.6 billion to Ukraine through five MFA programs to support the implementation of a broad reform agenda in areas such as the fight against corruption , an independent judiciary, the rule of law and the improvement of the business climate. Under MFA’s latest program for Ukraine, the EU disbursed €1.2 billion. The program ended in 2021, with Ukraine implementing all the conditions agreed in the MoU in the areas of public financial management, governance and rule of law, and improving of the business climate.
At the same time, the Commission is working on all fronts to support Ukraine with emergency aid. This includes both humanitarian aid and civil protection aid. On March 1, Commission President Ursula von der Leyen announced additional EU funding of at least €500 million for activities in response to the humanitarian consequences of the crisis.
College members said:
President Ursula von der Leyen noted: “An unscrupulous autocrat tries to plunge a free and sovereign country into misfortune. Putin’s unwarranted war not only exerts brutal military pressure but also economic pressure on Ukraine and its brave people. Europe stands firmly by their side. I am happy to announce that today the EU disbursed €300 million in emergency macro-financial assistance to support Ukraine’s finances. This is the first installment of the €1.2 billion financial aid plan that I announced at the end of January. More payments and packages will follow.
Valdis DombrovskyExecutive Vice President for an Economy that Works for People, said: “This is a critical time when Ukraine needs our help – urgently. We moved at record speed to disburse a first part of the emergency macro-financial assistance to Ukraine. Today he will receive the first payment of 300 million euros, followed by another payment of the same amount in a week. This assistance complements and continues the EU’s longstanding support to Ukraine. It will help provide vital support at a time of intense suffering and hardship caused by unprovoked Russian aggression against Ukraine and its people. Europe is doing all it can to support Ukraine at this difficult time as its people fight for democracy and freedom as a sovereign state.
joseph BorrellHigh Representative for Foreign Affairs and Security Policy: “With this emergency package, we are sending a strong message: the European Union stands with Ukraine and its people. Putin’s senseless war against Ukraine is putting massive economic pressure on the Ukrainian people, and the European Union is acting with great speed to help Ukraine in the darkest times in Europe since World War II.
Paulo Gentilonithe economy commissioner said: “Day after day we witness the unspeakable cruelty of Putin’s war machine. And while we are repelled by the terror unleashed on the most vulnerable civilians, we are inspired by the incredible tenacity of the Ukrainian people and their leaders. The funds we are disbursing today are a tangible symbol of our solidarity with Ukraine in these darkest hours. »
Macro-financial assistance (MFA) operations are part of a broader EU engagement with neighboring countries and are designed as an exceptional EU crisis response instrument. They are accessible to EU neighborhood countries with serious balance of payments problems.
In January 2022, the Commission proposed to step up financial support to Ukraine with a new emergency MFA envelope of up to €1.2 billion, to help Ukraine face the challenges growing economic and geopolitical. The Commission will also allocate an additional €120 million to Ukraine, which will significantly increase its bilateral aid to Ukraine in the form of grants this year. This support will strengthen Ukraine’s statebuilding and resilience efforts. Furthermore, the EU stands ready to continue investing in Ukraine’s future through its Economic and Investment Plan, which aims to mobilize up to €6.5 billion in investments. over the next few years.
This support comes on top of far-reaching and unprecedented sets of measures that the EU has taken in response to Russia’s acts of aggression against Ukraine’s territorial integrity.