Regulation (EU) 2022/2463 establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +)

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Series Details L 322, Pages 1-14
Publication Date 16/12/2022
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Summary:

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.

Further information:

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.

Source Link http://data.europa.eu/eli/reg/2022/2463/oj
Related Links
Commentary and Analysis
Foreign Policy, 13/12/2022: Brussels Brings Orban to Heel—for Now https://foreignpolicy.com/2022/12/13/brussels-orban-hungary-ukraine-aid-negotiations/

News
Helsinki Times, 07/11/2022: EU set to propose EUR 1.5 bn a month package to Ukraine https://www.helsinkitimes.fi/world-int/22454-eu-set-to-propose-eur-1-5-bn-a-month-package-to-ukraine.html
Hungary Today, 07/11/2022: Hungary Rejects Joint EU Borrowing to Aid Ukraine https://hungarytoday.hu/hungary-rejects-joint-eu-borrowing-to-aid-ukraine/
Bloomberg, 07/11/2022: Hungary Threatens to Block EU Joint Funds for Ukraine Aid https://www.bloomberg.com/news/articles/2022-11-07/hungary-won-t-back-eu-joint-funds-for-ukraine-chief-envoy-says
Bloomberg, 07/11/2022: EU Aims to Dispel Criticism on Ukraine Aid With €18 Billion Plan https://www.bloomberg.com/news/articles/2022-11-07/eu-aims-to-dispel-criticism-on-ukraine-aid-with-18-billion-plan
EUObserver, 08/11/2022: EU aims to ramp up financing for Ukraine https://euobserver.com/ukraine/156397
LUSA Agency, 08/11/2022: Portugal: Wide support for €18B Ukraine aid package - minister https://www.lusa.pt/article/39799877/portugal-wide-support-for-18b-ukraine-aid-package-minister
EurActiv, 09/11/2022: EU Commission proposes €18 billion Ukraine aid package for 2023 https://www.euractiv.com/section/europe-s-east/news/eu-commission-proposes-e18-billion-ukraine-aid-package-for-2023/
Euronews, 09/11/2022: Ukraine war: EU pledges €18 billion to cover Kyiv's budget gap, despite previous aid stuck in limbo https://www.euronews.com/my-europe/2022/11/09/ukraine-war-eu-pledges-18-billion-to-cover-kyivs-budget-gap-despite-previous-aid-stuck-in-
Reuters, 09/11/2022: Brussels proposes EU support plan for Ukraine, Hungary says 'no' https://www.reuters.com/world/europe/brussels-proposes-eu-support-plan-ukraine-hungary-says-no-2022-11-09/
EUObserver, 09/11/2022: Hungary challenges new EU loan plan for Ukraine https://euobserver.com/ukraine/156401
Interfax Ukraine, 09/11/2022: European Commission officially proposes to provide Ukraine with up to EUR 18 bln of MFA+ in 2023 https://en.interfax.com.ua/news/economic/871006.html
Politico, 10/11/2022: Hungary infuriates EU with block on €18B Ukraine aid https://www.politico.eu/article/germany-annalena-baerbock-hungary-europe-play-poker-aid-ukraine/
The Brussels Times, 10/11/2022: EU proposes €18 billion loan to Ukraine for 2023 https://www.brusselstimes.com/319784/eu-proposes-e18-billion-loan-to-ukraine-for-2023
ERR News, 14/11/2022: Reform MP: Hungary sees opportunity to blackmail EU over Ukraine aid https://news.err.ee/1608788272/reform-mp-hungary-sees-opportunity-to-blackmail-eu-over-ukraine-aid
RFE/RL, 18/11/2022: Hungary Will Not Support EU Aid Plan To Ukraine, Orban Says https://www.rferl.org/a/eu-ukraine-18-billion-aid-hungary-support-orban/32137288.html
Associated Press (AP News), 18/11/2022: Hungary will not support EU aid plan to Ukraine, Orban says https://apnews.com/article/europe-business-hungary-budapest-viktor-orban-cda12fb2b5f39d22b0a442652be6805d
Reuters, 24/11/2022: Hungary to provide $195 mln in financial aid to Ukraine - govt decree https://www.reuters.com/world/europe/hungary-provide-195-mln-financial-aid-ukraine-govt-decree-2022-11-24/
TVP World, 24/11/2022: Hungary to support Ukraine with EUR 187 mln in financial aid https://tvpworld.com/64706856/hungary-to-support-ukraine-with-eur-187-mln-in-financial-aid
Hungary Today, 25/11/2022: The EU Is Looking at a Future with Mountains of Debt https://hungarytoday.hu/the-eu-is-looking-at-a-future-with-mountains-of-debt/
Bloomberg, 02/12/2022: Orban Reiterates Opposition to Joint Ukraine Aid, Global Tax https://www.bloomberg.com/news/articles/2022-12-02/hungary-opposes-new-joint-eu-loan-for-ukraine-aid-orban-says
France24, 02/12/2022: Orban says Hungary will stick to veto of EU's Ukraine aid plan https://www.france24.com/en/europe/20221202-orban-says-hungary-will-stick-to-veto-of-eu-ukraine-aid-plan
Reuters, 05/12/2022: 'Immoral' for Hungary to hold up EU financing deal for Ukraine - Lithuania https://www.reuters.com/markets/europe/immoral-hungary-hold-up-eu-financing-deal-ukraine-lithuania-2022-12-05/
The Irish Times, 06/12/2022: Hungary blocks EU aid for Ukraine https://www.irishtimes.com/world/europe/2022/12/06/hungary-blocks-eu-aid-for-ukraine/
EUObserver, 06/12/2022: EU delays Hungary funds decision, as Budapest vetoes Ukraine aid https://euobserver.com/rule-of-law/156515
Euronews, 06/12/2022: Ukraine war: Hungary blocks €18 billion in aid for Kyiv and deepens rift with EU https://www.euronews.com/my-europe/2022/12/06/eu-ministers-delay-key-votes-on-tax-deal-and-ukraine-aid-over-hungary-impasse
EurActiv, 06/12/2022: Hungary vetoes EU financial aid for Ukraine https://www.euractiv.com/section/economy-jobs/news/hungary-vetoes-eu-financial-aid-for-ukraine/
Politico, 06/12/2022: Hungary vetoes Ukraine aid, EU seeks alternative solution https://www.politico.eu/article/hungary-vetoes-ukraine-aid-eu-seeks-alternative-solution/
Associated Press (AP News), 06/12/2022: Hungary blocks EU Ukraine aid, deepening rift with Brussels https://apnews.com/article/europe-business-hungary-budapest-viktor-orban-6bdcc94f8db8e5a9ca0b26cf1c3b7157
ERR News, 09/12/2022: Estonian FM condemns Hungary for blocking EU's €18b aid loan to Ukraine https://news.err.ee/1608815461/estonian-fm-condemns-hungary-for-blocking-eu-s-18b-aid-loan-to-ukraine
The Sofia Globe, 10/12/2022: EU ministers adopt legislative package on 18 billion euro assistance to Ukraine https://sofiaglobe.com/2022/12/10/eu-ministers-adopt-legislative-package-on-18-billion-euro-assistance-to-ukraine/
Bloomberg, 12/12/2022: EU Breaks Logjam on Ukraine Aid With Hungary Funding Deal https://www.bloomberg.com/news/articles/2022-12-12/eu-nations-agree-to-unblock-ukraine-aid-approve-hungary-funds
Politico, 12/12/2022: EU strikes deal with Hungary, reducing funding freeze to get Ukraine aid approved https://www.politico.eu/article/eu-deal-hungary-drop-vetoe-recovery-plan-approved-funding-freeze-ukraine-aid/
Deutsche Welle,13/12/2022: EU strikes deal to lift Hungary's block on Ukraine aid https://p.dw.com/p/4KrZw
Reuters, 13/12/2022: EU strikes deal with Hungary over Ukraine aid, tax plan, recovery funds https://www.reuters.com/world/europe/eu-wrangles-with-hungary-over-ukraine-aid-tax-plan-billions-risk-2022-12-12/
Le Monde, 13/12/2022: Hungary lifts veto on aid to Ukraine and minimum tax on multinational companies https://www.lemonde.fr/en/international/article/2022/12/13/hungary-lifts-veto-on-ukraine-aid-to-ukraine-and-minimum-tax-on-multinational-companies_6007659_4.html
RTÉ News, 13/12/2022: EU strikes deal with Hungary over Ukraine aid, tax plan and recovery funds https://www.rte.ie/news/2022/1213/1341484-eu/
EurActiv, 13/12/2022: Orbán backs down: EU agrees on Ukraine aid and minimum tax https://www.euractiv.com/section/economy-jobs/news/orban-backs-down-eu-agrees-on-ukraine-aid-and-minimum-tax/

Official
EUR-LEX: COM(2022)597: Proposal for a Regulation establishing an Instrument for providing support to Ukraine for 2023 (macro-financial assistance +) https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2022:597:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Instrument for providing support to Ukraine for 2023 (macro-financial assistance +) (2022/0371(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2022/0371(COD)
European Commission: International Economic Relations: Ukraine https://economy-finance.ec.europa.eu/international-economic-relations/candidate-and-neighbouring-countries/neighbouring-countries-eu/neighbourhood-countries/ukraine_en
European Commission: Press Release, 09/11/2022: Commission proposes stable and predictable support package for Ukraine for 2023 of up to €18 billion https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6699
European Commission: Commission proposes a support package of up to €18 billion for Ukraine for 2023: Questions and Answers (9 November 2022) https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_6701
Ukrainian Presidency: News, 18/11/2022: President of Ukraine met with the Executive Vice-President of the European Commission https://www.president.gov.ua/en/news/prezident-ukrayini-zustrivsya-z-vikonavchim-vice-prezidentom-79237
European Parliament: Press Release, 24/11/2022: Parliament approves €18 billion loan for Ukraine for 2023 https://www.europarl.europa.eu/news/en/press-room/20221118IPR55713/
Renew Europe EP Group: Newsroom, 24/11/2022: Ukraine: new macro-financial assistance instrument shows EU support remains unwavering https://www.reneweuropegroup.eu/news/2022-11-24/new-macro-financial-assistance-instrument-for-ukraine-eu-support-remains-unwavering
Czech Council Presidency: Press Release, 06/12/2022: ECOFIN: Ministers debate financial assistance to Ukraine, a revision of fiscal rules and a recovery plan for Hungary https://czech-presidency.consilium.europa.eu/en/news/ecofin-ministers-debate-financial-assistance-to-ukraine-a-revision-of-fiscal-rules-and-a-recovery-plan-for-hungary/
Council of the European Union: Press Release, 10/12/2022: Council adopts €18 billion assistance to Ukraine https://www.consilium.europa.eu/en/press/press-releases/2022/12/10/council-adopts-18-billion-assistance-to-ukraine/
EUR-LEX: OJ C 476, 15/12/2022: Position (EU) No 4/2022 of the Council at first reading with a view to the adoption of a Regulation establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.C_.2022.476.01.0013.01.ENG
EUR-LEX: OJ C 476, 15/12/2022: Statement of the Council’s reasons: Position (EU) No 4/2022 of the Council at first reading with a view to the adoption of a Regulation establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.C_.2022.476.01.0027.01.ENG
European Commission: Press Release 13/01/2023: Commission disburses first €3 billion to Ukraine of the up to €18 billion Macro-financial Assistance+ package https://ec.europa.eu/commission/presscorner/detail/en/ip_23_228

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