The EU has adopted a proposal to provide €1bn in macro-financial assistance to support economic stabilisation and structural reforms in Ukraine.
The provision of macro-financial assistance to Ukraine was announced in response to a request from Ukrainian authorities, and was agreed in negotiations between Ukrainian President Petro Poroshenko and European Commission President Jean-Claude Juncker.
The two parties have established a memorandum of understanding which will take into account measures that remain outstanding from previous macro-financial assistance and increase efforts to combat political corruption in the country.
The provision of support would be conditional on the implementation of reform measures which would aim to address vulnerabilities in the Ukrainian economy. The new commitment will bring the total amount the EU has pledged to the reform process in Ukraine to €12.8bn since 2014, of which some €2.8bn was provided through three previous macro-financial assistance programmes.
What has the commission said?
Commission Vice-President Valdis Dombrovskis, responsible for financial stability and financial services, said that the proposal would demonstrate both the EU and Ukraine’s commitment to economic and social reform in the country. The provision of funding support is contingent on this drive towards reform, he emphasised.
Dombrovskis said: “Today’s proposal on the fourth Macro-Financial Assistance programme of €1 billion shows the EU’s commitment to stand with the people of Ukraine. This solidarity must go hand-in-hand with a continued commitment from the Ukrainian authorities to an ambitious reform agenda to ensure a stable and prosperous Ukraine.”
Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, recognised the efforts Ukraine has taken to provide necessary reforms in sectors from energy, to public administration, to the judiciary.
He concluded: “Ukraine continues to enjoy the political and financial support of the European Union for its reform efforts. Much has been achieved over the past few years, often in the most trying of circumstances. Now I urge the authorities to take forward the reform drive with renewed vigour, to build a fairer, more stable and more prosperous country in the interest of all Ukrainians.”