Decision (EU) 2022/313 providing macro-financial assistance to Ukraine

Summary:

Decision (EU) 2022/313 - signed by the co-legislators on 24 February 2022 - establishing a new emergency Macro-Financial Assistance (MFA) programme for Ukraine of up to €1.2 billion.

Further information:

Macro-Financial Assistance (MFA) operations are part of the European Union's wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbourhood countries experiencing severe balance-of-payments problems.

It became increasingly clear the existing geopolitical tensions between Russia and Ukraine were having a detrimental effect on the latter's economic and financial stability. Persistent security threats triggered a substantial outflow of capital. Against this backdrop - and following a request from the Ukrainian authorities - the European Commission tabled on 1 February 2022 a proposal to provide a new MFA in the form of loans aimed at fostering stability in Ukraine. The MFA was designed to have a duration on 12 months and would consist of two disbursements.

The plenary of the European Parliament adopted the proposed Decision on 16 February, followed by the Council of the European Union on 21 February. The Decision was formally signed by the co-legislators on 24 February 2022 and published in the Official Journal on 28 February 2022.

The first €600 million instalment was disbursed on 11-18 March 2022. The second instalment was delivered on 20 May 2022.

• Primary Source

News

Reuters, 24/01/2022: EU offers Ukraine 1.2 billion euro aid package https://www.reuters.com/world/europe/eu-offers-ukraine-12-bln-euro-aid-package-2022-01-24/

Politico, 24/01/2022: EU to weigh €1B aid package for Ukraine https://www.politico.eu/article/eu-billion-financial-assistance-ukraine/

BBC Sounds: World Business Report, 24/01/2022: European Commission announces Ukraine financial aid https://www.bbc.co.uk/sounds/play/w172y48df8z9yb8

Politico, 15/01/2022: MEPs vote to fast-track Ukraine financial aid package https://www.politico.eu/article/mep-green-light-european-parliament-financial-aid-ukraine/

The Irish Times, 16/02/2022: European Parliament approves €1.2 billion macro-financial loan to help Ukraine https://www.irishtimes.com/news/ireland/irish-news/european-parliament-approves-1-2-billion-macro-financial-loan-to-help-ukraine-1.4804495

Politico, 21/02/2022: EU approves emergency €1.2B aid for Ukraine https://www.politico.eu/article/eu-to-provide-emergency-financial-aid-to-ukraine/

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Official

EUR-LEX: COM(2022)37: Proposal for a Decision on providing macro-financial assistance to Ukraine https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2022:37:FIN

EUR-LEX: SWD(2022)25: Staff Working Document accompanying the Decision - Ex-ante evaluation statement https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:25:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Macro-financial assistance to Ukraine (2022/0026(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2022/0026(COD)

European Commission: International Economic Relations: 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: Statement by President von der Leyen on EU financial support for Ukraine (24 January 2022) https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_545

European Commission: Press Release, 01/02/2022: Commission tables proposal for €1.2 billion emergency macro-financial assistance package for Ukraine, as announced by President von der Leyen https://ec.europa.eu/commission/presscorner/detail/en/ip_22_674

Council of the European Union: Press Release, 11/02/2022: Council supports €1.2 billion assistance to Ukraine https://www.consilium.europa.eu/en/press/press-releases/2022/02/11/council-supports-1-2-billion-assistance-to-ukraine/

European Parliament: Press Release, 16/02/2022: Parliament approves €1.2 billion in loans to Ukraine https://www.europarl.europa.eu/news/en/press-room/20220211IPR23122/

Council of the European Union: Press Release, 21/02/2022: Council adopts €1.2 billion assistance to Ukraine https://www.consilium.europa.eu/en/press/press-releases/2022/02/21/council-adopts-1-2-billion-assistance-to-ukraine/

European Commission: Press Release, 11/03/2022: EU disburses €300 million in emergency Macro-Financial Assistance to Ukraine https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1670

European Commission: Press Release, 20/05/2022: EU disburses €600 million in Macro-Financial Assistance to Ukraine https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3183

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