22 Nov 2022 16:47

European Commission to provide Ukraine with another 2.5 bln euros - von der Leyen

MOSCOW. Nov 22 (Interfax) - The European Commission (EC) is allocating another 2.5 billion euros for Ukraine, EC President Ursula von der Leyen was quoted by the Ukrainian media as saying in a social media post on Tuesday.

"We are planning 18 billion euros for 2023, with funding disbursed regularly. For urgent repairs and fast recovery leading to a successful reconstruction. We will keep on supporting Ukraine for as long as it takes," she added.

As reported, the EC announced plans to provide 18 billion euros to Ukraine in 2023 with funding earmarked regularly. These funds will be used to maintain the energy infrastructure and healthcare system, as well as for payments of salaries and pensions.

EU High Representative for Foreign Affairs and Security Policy Josep Borrell said that the total military assistance to Ukraine by the EC and the EU member states reached 8 billion euros and urged not to confuse it with the assistance under the European Peace Facility, which amounts to 3.1 billion euros.

Prime Minister Denis Shmygal said later that Ukraine had received more than $23 billion of international financial assistance, including $4.8 billion from the EC and $8.5 billion from the U.S. since the outbreak of the crisis.

Later on Tuesday, the Ukrainian media, citing the website of the Finance Ministry, confirmed that Ukraine had received another tranche of 2.5 billion euros under the current EU Macro-Financial Assistance Program (MFA).

"We are sincerely grateful to the EU for the financial support provided to Ukraine. The received funds will greatly help ensure urgent expenditures of the state budget and maintain economic stability in the state," Finance Minister Sergei Marchenko was quoted by the ministry as saying.

The total amount of the EU macro-financial assistance to Ukraine has reached 6.7 billion euros since February 24, the Finance Ministry said.

Ukraine is expected to receive the last tranche as part of the eighth program of macro-financial assistance by the end of this year, the ministry noted.

As reported, in late May and in early June of this year, the EU preliminarily approved a new emergency macro-financial assistance to Ukraine worth 9 billion euros, of which 1 billion euros were allocated in early August. The remaining 8 billion euros were expected to be allocated in one tranche, but the final decision regarding it was delayed. One of the reasons for that was a discussion as to whether these funds should be provided as loans or grants.

In the end, only 2 billion euros were received in mid-October, but European Commission Vice-President Valdis Dombrovskis said that the third tranche of 3 billion euros was expected in early December. He later said that 2.5 billion euros will be earmarked in late November and 0.5 billion euros in early December, while the remaining 3 billion euros of the initial 9 billion euros are included in a new program of financial support for Ukraine in 2023 for a total of 18 billion euros.

In all situations, these are loans, but those granted on preferential terms.