|Author (Corporate)||Council of the European Union, European Parliament|
|Series Title||Official Journal of the European Union|
|Series Details||L 322, Pages 1-14|
|Content Type||Legislation, News, Policy-making|
Regulation (EU) 2022/2463 - adopted by the co-legislators on 14 December 2022 - establishing a new instrument aimed at providing support to Ukraine for 2023. The instrument was named Macro-Financial Assistance Plus (MFA+), which was allocated €18 billion.
The budget of the European Union (EU) has been providing comprehensive reform and investment support to Ukraine since 2014. In response to Russia's invasion in February 2022, the European Union, its Member States and financial institutions have mobilised over €19 billion for the country's economic, social and financial resilience. The support was reoriented mostly to emergency assistance and rehabilitation of damaged or destroyed national and municipal infrastructure and housing. However, the assistance has been provided on an ad-hoc basis and it has required significant provisioning from the EU budget and national guarantees. Due to Russia's invasion of Ukraine, the short-term funding needs of Ukraine for 2023 are expected to be significant.
Therefore, a more structural and efficient approach to the EU's support to Ukraine in 2023 was deemed necessary. This Regulation establishes the Macro Financial Assistance Plus instrument to support Ukraine in the form of loans, non-repayable support and an interest rate subsidy. The Act lays down the objectives of the instrument, its financing, the forms of EU funding under it and the rules for providing such funding.
It sets an orderly and sustainable framework for the channelling of financial assistance to Ukraine, while offering flexibility to adjust the support to the evolving funding needs of the country and preparing ground for a future Rebuild Ukraine Facility, in line with a Communication adopted in May 2022 and the principles agreed in the Lugano's Ukraine Reform Conference of July 2022. The instrument provides short-term financial relief in the form of highly concessional loans financial immediate needs, rehabilitation of critical infrastructure and initial support towards sustainable post-war reconstruction.
The draft law was adopted by the European Commission 9 November 2022, alongside amendments to MFF Regulation and to the Financial Regulation. The plenary session of the European Parliament endorsed the proposal on 24 November. Following initial disagreement among Member States, the Council of the European Union eventually adopted the proposed instrument on 10 December. The Act was formally signed by the co-legislators on 14 December 2022 and published in the Official Journal on 16 December 2022.
A first instalment of €3 billion was disbursed on 17 January 2023.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, Wars | Conflicts|
|Keywords||EU External Action, War in Ukraine (2022)
|Countries / Regions||Ukraine|
|International Organisations||European Union [EU]|