EC announces regular transfers within MFA+ for Ukraine

After the announcement of the transfer to Ukraine of EUR 1.5 billion from the package of macro-financial assistance plus (MFA+), which the EU allocated for Ukraine in 2023, the European Commission (EC) announced the decision to carry out the next transfers in August and September of 2023, in view of Ukraine's progress on the path of reforms even in the conditions of Russia's war.

Veerle Nuyts, spokesperson for the EC on economic and financial affairs, stated this today in Brussels at a press briefing, an Ukrinform correspondent reports.

Today's recount follows the EC's conclusion that Ukraine continues to make satisfactory progress in strengthening the rule of law and financial stability, improving the functioning of the gas system, and promoting a better business climate. As a result of these achievements, two further monthly payments will be made to Ukraine, each in the amount of EUR 1.5 billion, in August and in September, the EC spokesperson said.

She reminded that the tranche of EUR 1.5 billion, which was transferred today, is already the sixth such payment by the EU to Ukraine within the framework of MFA+ package for EUR 18 billion this year.

To date, Ukraine has received EUR 10.5 billion from this package, which will allow the country to maintain macroeconomic stability and restore critical infrastructure that was destroyed during Russia's war of aggression. This European aid will allow Ukraine to pay salaries and pensions, continue to provide important social services for the population, in particular, to ensure the operation of hospitals and schools.

As reported, at the end of 2022, the EU agreed to an unprecedented package of macro-financial assistance for Ukraine in the amount of EUR 18 billion, which provides for permanent financing of EUR 1.5 billion every month until 2023. This package, along with assistance from other international donors, is intended to maintain the capacity of the Ukrainian state to perform its main social functions and to ensure the stability of Ukraine during wartime.

The EC proposed to amend the multi-year budget of the EU for 2024-2027 and to create the so-called Ukrainian Fund in the amount of up to EUR 50 billion, which will be designated for the sustainable financing of Ukraine's immediate needs and its recovery programs over the next 4 years. It is expected that EU budget support for Ukraine will serve as an incentive for other donors and will contribute to the inflow of direct investments into the country.