European Commission to swiftly release 2 bln euros to Ukraine as part of macro-financial assistance
MOSCOW. Oct 12 (Interfax) - The European Commission has raised 11 billion euros by placing seven-year bonds for 5 billion euros and 20-year bonds for 6 billion euros, 2 billion euros of which will be used in the second credit tranche of macro-financial assistance for Ukraine, Ukrainian media said, citing the website of the European Commission.
"EU funding is a concrete expression of solidarity with Ukraine and Member States recovering from the pandemic. Today, we have successfully and under challenging market conditions raised a further 11 billion euros. Of them, 2 billion euros will be released swiftly to help Ukraine," Commissioner in charge of Budget and Administration Johannes Hahn was quoted by Ukrainian media as saying.
The European Commission added that it has already disbursed 2.2 billion euros to Ukraine this year.
Meanwhile, the third tranche of the European Union's macro-financial assistance to Ukraine in the amount of 3 billion euros will be disbursed in early December, following the first tranche of 1 billion euros which was received by Ukraine in early August, and a 2-billion-euro tranche to be disbursed soon, the Ukrainian Economy Ministry said, citing European Commission Vice President Valdis Dombrovskis.
"It is necessary to promptly complete the discussions among member states and ensure that the entire amount of macro-financial assistance actually goes to Ukraine. I hope that we will provide the next 2 billion euros in the near future, and another 3 billion euros in early December," the ministry quoted Dombrovskis as saying at a conference of EU ambassadors, which was attended by Ukrainian First Deputy Prime Minister and Economy Minister Yulia Sviridenko by video link.
Since February 24, European partners have approved the provision of 19 billion euros to Ukraine, and now the EU is working to ensure that the funds reach Ukraine's accounts as quickly as possible, Dombrovskis said.
According to Sviridenko, Ukraine's own revenue today covers only 50% of budget expenditure, and Ukraine is holding negotiation with the EU, the United States and the International Monetary Fund to secure comprehensive support for Ukrainian public finances in 2023.
As reported, the EU tentatively approved in late May-early June a new 9-billion-euro package of urgent macro-financial assistance for Ukraine. Of this amount, only 1 billion euros have been disbursed so far. The remaining 8 billion euros were expected to be provided as one tranche, but a final decision on it has been delayed. One of the reasons being cited for the delay is an ongoing discussion as to how to provide these funds: as loans or as grant assistance.
Ukrainian Prime Minister Denis Shmygal said in the second half of September that Ukraine was expecting to receive the second tranche of 5 billion euros as part of the EU's macro-financial assistance as a loan before the end of September, and the last 3-billion-euro tranche in October as a grant. However, these expectations did not materialize once again.
In early October, Dombrovskis signed a memorandum of understanding on providing 5 billion euros in macro-financial assistance to Ukraine. Dombrovskis said that the package's second tranche of 2 billion euros would be disbursed in mid-October.
Meanwhile, Ukrainian media outlets reported that Ukrainian Parliament Deputy Speaker Yelena Kondratyuk met with deputy head of the European Commission's Support Group for Ukraine Georg Ziegler in Brussels on Tuesday. Kondratyuk said after the meeting that the European Commission stands ready to extend expert assistance to the Verkhovna Rada as it works to adapt Ukrainian legislation to meet European Union standards.
"The Verkhovna Rada pursues a responsible and systemic approach to these tasks. We together with the government plan to adopt a large package of European integration laws before the end of the year. It will pave the way for the start of direct talks on Ukraine's accession to the EU," she said.
Ziegler, in turn, said that the European Commission is ready to provide the Ukrainian parliament with all necessary expert support and assistance to enable Ukraine to carry out a prompt and high-quality process to adapt its legislation to European standards and to fulfill all recommendations issued by the European Commission.
