Decision (EU) 2018/947 providing further macro-financial assistance to Ukraine

Summary:

Decision (EU) 2018/947 - published by the European Union in July 2018 - which makes macro-financial assistance (MFA) of a maximum amount of €1 billion available to Ukraine, in the form of loans.

Further information:

This programme - the fourth macro-financial assistance to Ukraine (MFA IV) - seeks to build on the progress made in supporting stabilisation and structural reforms unders the previous MFA operations. All disbursements under the proposed programme - including the first - are conditional on the implementation of reform measures designed to address vulnerabilities identified in the Ukrainian economy. These measures are established in a Memorandum of Understanding and take into account measures that remained outstanding from the previous MFA programme.

Ukraine's Finance Minister addressed an official request to the European Commission in November 2017, seeking additional macro-financial assistance from the European Union (EU). This assistance was aimed at contributing to covering the country's external financing needs and supporting reform implementation. The Commission adopted a proposal on 9 March 2018 for a Decision on a programme for an amount of up to €1 billion, provided in the form of medium- to long-term loans in two tranches. The proposal was endorsed by the Council of the European Union on 29 May and by the European Parliament on 13 June. The Decision was adopted by the Parliament and the Council on 4 July 2018.

Yhe Memorandum of Understanding was signed by Ukraine and the European Commission in September 2018 and subsequently ratified by the Parliament of Ukraine. The first instalment of €500 million was released in December 2018, followed by the disbursement of a second tranche of the same amount in May 2020.

• Primary Source

Commentary and Analysis

EPRS: At a Glance, June 2018: Further macro-financial assistance to Ukraine http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2018)623530

Chatham House: Expert Comment, 18/07/2018: Ukraine Must Focus More on Reducing Opportunities for Corruption https://www.chathamhouse.org/expert/comment/ukraine-must-focus-more-reducing-opportunities-corruption

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News

Reuters, 09/03/2018: EU plans further 1 billion euros of aid to Ukraine https://www.reuters.com/article/idUKKCN1GL1QF

Kyiv Post, 29/05/2018: Council of EU approves 1 billion Euros of financial assistance for Ukraine https://www.kyivpost.com/ukraine-politics/council-of-eu-approves-e1-billion-of-financial-assistance-for-ukraine-added.html

Kyiv Post, 06/06/2018: EU’s billion euro package for Ukraine will likely come with conditions https://www.kyivpost.com/ukraine-politics/eus-billion-euro-package-for-ukraine-will-likely-come-with-conditions.html

Interfax Ukraine, 13/06/2018: EP approves EUR 1 bln of macro-financial assistance for Ukraine https://en.interfax.com.ua/news/economic/511784.html

TASS, 22/06/2018: EU cash injections in Ukraine disappear in tycoons’ pockets, Czech president says http://tass.com/world/1010558

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Official

EUR-Lex: COM(2018)127: Proposal for a Decision providing further macro-financial assistance to Ukraine https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:127:FIN

EUR-Lex: SWD(2018)66: Ex-ante evaluation statement on EU macro-financial assistance to Ukraine http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:066:FIN

European Parliament: Legislative Observatory: Procedural File for Proposal on further macro-financial assistance to Ukraine https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0058(COD)

European Commission: EU macro-financial assistance operations to Ukraine https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/international-economic-relations/enlargement-and-neighbouring-countries/neighbouring-countries-eu/neighbourhood-countries/ukraine_en

European Commission: Press Release, 09/03/2018: EU-Ukraine: Commission proposes €1 billion in new Macro-Financial Assistance https://ec.europa.eu/commission/presscorner/detail/en/IP_18_1702

European Parliament: Press Release, 13/06/2018: Parliament votes for €1 billion in aid to Ukraine http://www.europarl.europa.eu/news/en/press-room/20180607IPR05244/

European Commission: Press Release, 14/09/2018: Commission signs €1 billion in Macro-Financial Assistance to support reforms in Ukraine https://ec.europa.eu/commission/presscorner/detail/en/IP_18_5762

National Bank of Ukraine: News, 14/09/2018: Ukraine to Receive EUR 1 Billion in EU Macro-Financial Assistance https://bank.gov.ua/control/en/publish/article?art_id=77669369&cat_id=76291

European Commission: Press Release, 29/05/2020: EU approves disbursement of €500 million in macro-financial assistance to Ukraine https://ec.europa.eu/commission/presscorner/detail/en/ip_20_955

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ESO Records

Rebuilding Ukraine: An Assessment of EU Assistance [Chatham House Research Paper, August 2018] https://www.europeansources.info/record/rebuilding-ukraine-an-assessment-of-eu-assistance/

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