European Commission President Ursula von der Leyen announced today that the European Union has disbursed another €1.5 billion in macro-financial assistance to Ukraine.
“Our support helps keep Ukraine running, while defending itself,” wrote von der Leyen on Twitter. “And puts Ukraine firmly on its EU path by supporting reforms – good governance and financial stability, for example.”
On 17 January, the European Union disbursed the first €3 billion of the €18 billion of promised macro-financial assistance agreed in December 2022.
This emergency assistance aims to provide short-term financial relief, financing Ukraine’s immediate needs, rehabilitation of critical infrastructure and initial support towards sustainable post-war reconstruction, with a view to supporting Ukraine on its path towards European integration. The loans will have a 10-year grace period.
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The European Investment Bank (EIB), the EU bank, is providing €1.59 billion, supported by guarantees from the EU budget, to help Ukraine repair the most essential damaged infrastructure and resume critically important projects addressing the urgent needs of Ukrainian people.
This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of €668 million fully disbursed within a month of the war’s beginning. Like the first one, this new financing is offered at favourable terms including long tenors.
The package was agreed by the EIB Board of Directors yesterday; €1.05 billion will be made available immediately.
The financing will help essential services to resume and get the most critical infrastructure up and running again, strengthen the country’s resilience and maintain economic stability. It consists of two blocks of intervention:
- Immediate financial assistance totalling €1.05 billion. This will consist of upfront disbursements under eight existing finance contracts. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy efficiency measures in preparation for the cold season.
- Resuming implementation of EIB-financed projects in Ukraine totalling €540 million where possible, excluding areas of active hostilities and territories not controlled by the Ukrainian government. The selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes. The exact timing of these disbursements will depend on the state of advancement of underlying projects.
Valdis Dombrovskis, European Commission Executive Vice-President for an Economy that Works for People, said: “This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war. The European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes.”
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The European Commission, on behalf of the EU, today disbursed €600 million in Macro-Financial Assistance (MFA) to Ukraine to address its acute financing gap related to its exceptional humanitarian and defence needs.
The first tranche of €600 million of this emergency macro-financial assistance operation, worth €1.2 billion, was paid in two tranches on 11 and 18 March.
These funds are provided to Ukraine in the form of long-term loans on highly favourable terms. They contribute to financing part of the sizable funding gap of the country, estimated by International Financial Institutions at around $15 billion for the second quarter of 2022.
The disbursement of this macro-financial assistance was to be conditional on the implementation of a series of the structural policy measures by the Ukrainian authorities. However, due to force majeure circumstances, the Commission decided to allocate the second tranche as a matter of urgency.
“Going forward, the EU will continue to provide short-term financial support to Ukraine while accompanying it in its long-term reconstruction, in line with the plans announced on Wednesday. Ukraine will get back on its feet as a democratic and prosperous country,” President Ursula von der Leyen said.
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Georgia has launched talks with the European Union for financial assistance for the next seven years. The talks organized by the Ministry of Foreign Affairs of Georgia will continue from 9 to 11 February.
The first meeting was held on 9 February between the First Deputy Foreign Minister Vakhtang Makharoblishvili and the EU Ambassador to Georgia Carl Hartzell.
The consultations will focus on the priorities of the EU financial assistance (during the period from 2021 to 2027), which will help Georgia implement EU-funded projects and programmes in the future.
Thematic sessions will focus on the following areas: development of trade and economy (DCFTA), business promotion, agriculture, industry, services, SME support, consumer protection and women’s involvement in business, communications (transport, energy and digitalization), green economy and road safety, improvement of education quality and access to international education, digital infrastructure and digital economy, rule of law and sustainable institutions , environment and climate, public engagement and democracy.
The EU allocates considerable financial assistance in support of the reforms ongoing in Georgia.
Talks on financial assistance between Georgia and the EU will end tomorrow.
In 2014-2020 financial assistance of the EU for Georgia amounted to €750 million.
The Administration of the MFA Georgia