The EU is ready to allocate to Ukraine 600 million euros

The European Commission on behalf of the European Union today, March 16, adopted the decision on granting Ukraine the second tranche of macro-financial assistance, amounting to 600 million euros. About it reports a press-service of the European Commission.

As a result of this payment the overall macro-economic assistance, the EU offered Ukraine in 2014 will reach 2.81 billion euros, as the EC noted, is the large amount of macroeconomic assistance the European Union Predoctoral country outside the EU.

“Ukraine has done a wonderful job of stabilizing and reforming its economy, despite the unfolding armed conflict in its territory.We want to see continued positive trends of reforms in Ukraine. Payment present-day Ukraine the second tranche in the amount of 600 million euros the EU reaffirms its long-standing commitment to support Ukraine in its efforts to maintain stability and ensure economic recovery of the country”, – said Vice-President of the Commission for the Euro and social dialogue Valdis Dombrovskis.

As the press service of the European Commission, funds may go to Ukraine in late March or early April 2017.

The EU intends to continue working with Ukrainian authorities to promote reforms in Ukraine.

In particular, work will continue on the expansion of assistance to internally displaced persons. The European Commission will “continue to monitor developments and to monitor closely the implementation of reforms.” In addition, the Commission expects the prohibition of the export of wood represented in the Parliament of Ukraine, will be adopted without delay.

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.