EU pays next 1.5 bln euro financial aid tranche to Ukraine - EC head

BRUSSELS/MOSCOW. March 21 (Interfax) - The President of the European Commission, Ursula von der Leyen, announced on Tuesday the payment of another tranche of EU macro-financial assistance to Ukraine in the amount of 1.5 billion euros out of 18 billion planned for 2023.

"Today we disbursed another 1.5 billion euro to Ukraine. Our support helps keep Ukraine running while defending itself, and puts Ukraine firmly on its EU path by supporting reforms - good governance and financial stability, for example," the head of the EC tweeted.

In turn, Ukrainian media reported, citing Finance Minister Sergei Marchenko on social media that Ukraine on Tuesday received 1.5 billion euros from the second tranche under the new EU macro-financial assistance program.

Ukraine also thanked the European Commission for its support in maintaining financial stability in the country.

Last week, the forthcoming payment of 1.5 billion euros to Kiev was described "as emergency support to help Ukraine meet urgent needs," Executive Vice President of the European Commission Valdis Dombrovskis said.

In December 2022, the EU Council approved a decision on macro-financial assistance to Ukraine for 2023 in the amount of 18 billion euros with a 10-year grace period. EU Member States will cover the bulk of the interest costs. Guarantees for this borrowing are to be provided either from the EU budget or by the Union countries.

The EC explained that Ukraine will have to repay the loans within 35 years, starting in 2033.

In January, the European Commission paid Ukraine 3 billion euros, the first tranche of this assistance. Starting in March, 1.5 billion euro payments will be made monthly.