Ukraine receives another financial aid tranche of 1.5 bln euros from EU - PM

MOSCOW/BRUSSELS. Aug 22 (Interfax) - Ukraine received another macro-financial assistance tranche of 1.5 billion euros from the European Union on Tuesday, Ukrainian Prime Minister Denis Shmygal said.

"Ukraine today received another tranche of 1.5 billion euros in macro-financial assistance from the EU. In total, EU budget support to Ukraine in 2023 already amounts to 12 billion euros," Ukrainian media quoted Shmygal as saying on social media.

"We are mobilizing every effort to help Ukraine. Today, we paid another 1.5 billion euros in assistance to the country. [...] And our support will go well beyond 2023. We will continue to stand resolutely by Ukraine's side, with up to 50 billion euros in support proposed for 2024-2027," European Commission President Ursula von der Leyen said, in turn.

"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 statement published in Brussels.

With this payment, Ukraine has so far received 12 billion euros this year to continue paying wages and pensions, and keep essential public services running, such as hospitals, schools, and housing for relocated people, it said.

"It will also allow Ukraine to ensure macroeconomic stability and restore critical infrastructure," the European Commission said.

The support to Ukraine and Ukrainians amounts to 76 billion euros since February 2022, the European Commission said. This includes financial, humanitarian, emergency budget and military support to Ukraine from the EU, member states and European financial institutions, as well as resources made available to help member states cater for the needs of Ukrainian refugees, it said.

The EU Council in December 2022 decided to allocate 18 billion euros of macro-financial assistance to Ukraine in 2023. Member states will cover the bulk of the interest.

Ukraine will have 35 years to repay the funds, starting in 2033, according to the European Commission.

Kiev received the first tranche of 3 billion euros in January. Subsequent tranches have been disbursed monthly at 1.5 billion euros starting in March. The previous tranche was received on July 25.