EU pays another 1.5-bln-euro MFA tranche to Ukraine

BRUSSELS. May 23 (Interfax) - The European Commission on Tuesday announced the disbursement of a fourth payment of 1.5 billion euros under the 18-billion-euro Macro-Financial Assistance (MFA) package for Ukraine.

"With this instrument, the EU seeks to help Ukraine cover its immediate funding needs, with stable, predictable and sizeable financial support in 2023," the European Commission said in a communique published in Brussels on Tuesday.

This funding is designed to help Ukraine continue paying wages and pensions, maintain the functioning of its hospitals and schools, and provide housing for relocated people, it said.

It should also allow Ukraine to ensure macroeconomic stability and restore its critical infrastructure, such as energy infrastructure, water systems, transport networks, roads and bridges, it said.

"Today's payment comes after the [European] Commission on April 23 had found 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," it said.

Brussels has concluded that "Ukraine has 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."

This gives grounds to plan the disbursement of a further monthly payment of 1.5 billion euros in June, it said.

Since the start of military action, the EU's support for Ukraine and Ukrainians has reached around 70 billion euros, which includes financial, humanitarian, emergency budget and military support from the EU, its member states, and European financial institutions, as well as resources made available to help member states cater for the needs of Ukrainians refugees, it said.