E.U. Financial Support For Ukraine

What You Need To Know:

✅ “The second tranche of macro-financial assistance to Ukraine of EUR 600 million is meant to provide financing for Ukraine’s budget and is not earmarked for specific purposes”
✅ One of the requirements imposed by the EU for Ukraine to receive the second installment was the adoption of the electronic declaration system for politicians and public officials;
✅ While more needs to be done in terms of reforms, the EU is “ready to assist Ukrainian side in the further work of this direction;”
✅ The only issue that stands in the way of receiving the money is a current export ban on timber, which is not compatible the EU and Ukraine free-trade agreement.

Earlier the European Union agreed to provide Ukraine with EUR 1.8 billion of financial assistance, divided into three separate tranches. According to Valdis Dombrovskis, European Commission Vice President for European and Social Dialogue, the “second tranche of macro-financial assistance to Ukraine of EUR 600 million is meant to provide financing for Ukraine’s budget and is not earmarked for specific purposes.” This tranche is expected to arrive by the end of the year.

One of the requirements imposed by the EU for Ukraine to receive the second installment was the adoption of the electronic declaration system for politicians and public officials. “Significant progress has been made by establishing an anti-corruption authority and establishing a system of e-declarations,” says Dombrovskis. These elements are considered as important transparency requirements for politicians. Dombrovskis adds that while more needs to be done in terms of reforms, the EU is “ready to assist Ukrainian side in the further work of this direction.”

The only issue that stands in the way of receiving the money is a current export ban on timber, which is not compatible the EU and Ukraine free-trade agreement. At the summit, Ukraine’s President Petro Poroshenko was committed to resolving this matter, says Dombrovskis.

Hromadske’s Volodymyr Solohub spoke to Valdis Dombrovskis, European Commission Vice President for European and Social Dialogue in November 2016 in Brussels.