Mingarelli told how Ukraine to receive another tranche from the EU

Ukraine needs only to register the draft law on the moratorium on the export of unprocessed timber to attract 600 million Euro macro-financial assistance of the EU. This was announced by the head of the EU delegation in Ukraine Hugues Mingarelli.

“No, just register the draft law in the Parliament“, – said the representative of the EU on the conditions for granting the next tranche of macro-financial assistance from the EU.

Mingarelli noted that the moratorium on the export of timber and lumber in its raw form was introduced in violation of Ukraine’s commitments under the world trade organization (WTO) and the Association agreement with the EU.

In addition, added the EU representative, another condition of granting Ukraine financing is a settlement by the authorities of providing social benefits to internally displaced persons in Ukraine.

“Much has been done, but it is important that all internally displaced persons have received their payments, even those who have not yet registered,” said Mingarelli.

According to him, once these issues are resolved, Ukraine in a few weeks will receive the promised funding.

We will remind, today, on 16 March, the European Commission approved the allocation of 600 million Euro macro-financial assistance to Ukraine.

The Verkhovna Rada on 9 April 2015 passed a law, which for 10 years has banned the export of timber and lumber in its raw form (forest-“logs”). The ban on the export of timber tree species (except pine) was introduced from 1 November 2015, tree species pine trees – from 1 January 2017.

Currently, the Verkhovna Rada registered a draft law to replace the current moratorium on the export of unprocessed wood proposes to introduce an interim 15% duty on the export of such timber and the registration of the relevant foreign trade contracts.

Note that the moratorium on the export of roundwood, as the prospect of its abolition, is a “stumbling block” and a source of active debate in Ukraine. EU officials have repeatedly stressed the need to lift this moratorium and were tied to the removal of this restriction, the next tranche of macro-financial assistance.

Cancel another famous moratorium on sale of agricultural land, is one of the essential requirements Mezhdunarodnogo monetary Fund, the final version of the Memorandum with which Ukraine has recently agreed.

As a result, in March 2017, the government of Ukraine expects to receive from the IMF of the next credit tranche in the amount of one billion U.S. dollars.

As you know, the EU provides Ukraine with financial assistance for a period of 2.5 years – the term of assistance expires January 4, 2018.

At the request of Ukraine at the end of 2014 on additional financial aid as a result of deterioration of its macroeconomic situation, 8 January 2015, the European Commission proposed to provide Ukraine with a package of macro-financial economic assistance worth up to € 1.8 billion to mitigate external needs of the country funding.

The Commission’s proposal was adopted by casacanditella April 15, 2015. 22 may 2015, Ukraine and the EU in Riga signed a Memorandum of understanding (MoU) and loan agreement (LFA) in the third program of macroeconomic assistance of the EU. These two documents were ratified by the Verkhovna Rada of Ukraine on 18 June 2015 and entered into force on 3 July 2015. The first tranche under the new programme (EUR 600 million) was paid on 22 July 2015.

After the separation of Ukraine tranche in the amount of 600 million euros, agreed on 16 March 2017, the total amount of loans from the EU received in Ukraine, will amount to 2.81 billion Euro since the beginning of 2014.

This amount includes 1.61 billion euros, paid in 2014-2015 in the framework of the two previous operations macro-financial assistance the EU and EUR 1.2 billion in the third, continuing operations.

The European Commission said that Ukraine will be able to use the final amount of 600 million euros in the third program of financial aid subject to the successful implementation of the measures referred to in the Memorandum of understanding that Ukraine has agreed with the EU.