EU allots another 1.5-bln-euro tranche of macrofinancial aid to Ukraine

MOSCOW. July 25 (Interfax) - The European Union has allocated another tranche of 1.5 billion euros in macrofinancial assistance to Ukraine on Tuesday, European Commission President Ursula von der Leyen said.

"Today we paid another 1.5 billion euros, to help keep the state running and repair infrastructure. More will come," von der Leyen said on social media on Tuesday.

The money has been transferred to the Ukrainian budget, Ukraine's Finance Ministry said, adding that in 2023 Kiev has already received 10.5 billion euros from the EU's macrofinancial assistance package of 18 billion euros approved for this year.

Since February 2022, the EU has provided 17.7 billion euros in macrofinancial assistance to Ukraine. "These funds have helped maintain macroeconomic stability in the country and help finance priority state budget spending in a timely manner and in full," the ministry's press release quoted Finance Minister Sergei Marchenko as saying.

The Ukrainian budget had received $23.6 billion of financing from international partners by July 21, as compared to the $32.1 billion provided last year, whereas Ukraine's financial needs stands at around $42 billion this year.

In December 2022, the Council of the European Union approved the provision of 18 billion euros in macrofinancial assistance to Ukraine in 2023 with a ten-year grace period. EU member states will repay most of the interest.

The European Commission said that Ukraine would repay the loans within 35 years, starting in 2033.

The European Commission gave the first tranche of 3 billion euros to Ukraine in January. Monthly tranches of 1.5 billion euros have been provided since March. The previous tranche was provided on June 22.