Photo by Omid Armin on Unsplash
The European Commission has agreed to pay a sixth tranche of €1.5 billion under the macro financial assistance Plus package for Ukraine worth up to €18 billion.
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.
With the latest payment, Ukraine has received €10.5 billion this year under the MFA “Plus”.
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, says the EC, 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 new payment comes after the Commission found on 25 July 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.
This finding will also unlock the payment of two further tranches worth €1.5 billion each, in August and September this year. Ukraine has notably achieved important progress to enhance financial stability, strengthen the rule of law, improve its gas system, encourage energy efficiency and promote a better business climate.
EC President Ursula von der Leyen said: “We have unlocked another €4.5 billion for Ukraine, to be paid over the next three months. As Ukraine faces the consequences of Russia’s brutal war of aggression, we continue to provide the country with steadfast financial support.”
“And we will continue for as long as it takes. We have proposed up to €50 billion between next year and 2027, to finance transformative reforms and investments in Ukraine.”
Overall, since the start of the war, the support to Ukraine and Ukrainians amounts to €76 billion. This 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.
Furthermore, on 20 June, 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.
