Photo by Markus Spiske on Unsplash
On 22 June the Commission paid €1.5 billion under the “Macro financial Assistance” package for Ukraine, worth up to €18 billion in total.
With this instrument, the EU says it seeks to help Ukraine cover its immediate funding needs, with stable, predictable and sizeable financial support in 2023.
This support will help Ukraine to continue paying wages and pensions, and keep essential public services running, such as hospitals, schools, and housing for relocated people.
It will also allow Ukraine to ensure macroeconomic stability and restore critical infrastructure destroyed by Russia in its war of aggression, such as energy infrastructure, water systems, transport networks, roads and bridges.
The payment comes after the Commission found on 23 April that Ukraine continued to make satisfactory progress towards implementing the agreed policy conditions and complied with reporting requirements, which aim to ensure the transparent and efficient use of the funds.
Ukraine has, said an EC spokesman, notably achieved important progress to strengthen the rule of law, enhance financial stability, improve the functioning of the gas system and promote a better business climate.
President Ursula von der Leyen said: “Europe keeps its word. The disbursement of another €1.5 billion for Ukraine in macro-financial assistance will help Ukraine keeping its services and infrastructure afloat. More will come. We just proposed steady financial support for Ukraine until 2027. Because we are in this for the long haul and we will stand at Ukraine’s side in its brave fight for freedom.”
Overall, since the start of the war, the support to Ukraine and Ukrainians amounts to over €70 billion. This, says the EC, includes financial, humanitarian, emergency budget and military support to Ukraine from the EU, Member States and the European financial institutions, as well as resources made available to help Member States cater for needs of Ukrainians fleeing the war.
The Commission plans to set up a dedicated Facility providing coherent, predictable and flexible support to Ukraine for the period 2024-2027, for an overall amount of up to €50 billion.
