EU financial assistance to Ukraine
European Union financial assistance is aimed at supporting reform and European integration in Ukraine.
Short- and medium-term priorities are set out as part of the "European Agenda for Reform" [217 KB] a roadmap for the delivery of EU support that encompasses a wide-ranging set of measures which reflect the priorities of the Ukrainian government and the expectations of the Ukrainian people. The measures range from assistance to constitutional reform to cooperation on energy matters, from financial assistance by the EU to the unilateral opening of its markets for Ukrainian products, from the reform of the judiciary and civil service to the visa liberalisation process.
(See also: "European Agenda for Reform" [548 KB] dated May 2014).
Recent milestones in the implementation of the European Agenda for Reform include:
- “State Building Contract” (SBC) signed on 13 May 2014 by European Commission President Jose Manuel Barroso and Ukrainian Prime Minister Arseniy Yatsenyuk and worth €355 million (plus €10 million support to civil society) which will help the government of Ukraine to address short-term economic stabilisation needs and implement governance reform order to promote the fight against corruption, public administration reform, election law and constitutional reform. The first tranche of €250 million was paid on 12 June. Conditionality for the second tranche is summarised in the Table with Performance indicators [221 KB] . Civil society will be closely engaged in monitoring the performance indicators.
- The signing of the Memorandum of Assistance to Ukraine that is necessary to give effect to the €1.61 billion Macro-Financial Assistance loan programme. The EU disbursed the first tranche of €100 million (MFA I) and the second tranche of €500 million (MFA II) on 20 May and 17 June correspondently.
Both "State Building Contract" and Macro-Financial Assistance loan programme are the deliverables of the €11 billion package to support Ukraine, announced by President Barroso on 5 March 2014.
The Single Support Framework (SSF) that is intended to cover the longer-term prioritisation of EU financial support is currently on hold, given the ongoing turmoil. Funds available in 2014 have been allocated to the SBC. The Commission intends to revert to the Ukrainian authorities to prioritise new budgetary commitments for the years 2015-17 when the situation in Ukraine becomes clearer.
The EU is the largest donor to Ukraine. Since 1991, assistance provided by the European Community alone has amounted to over € 3.5 billion. EU financial assistance to Ukraine is on the rise. Annual bilateral funding (National Action Programme) has increased from €47 million in 2002 to €186 million in 2013 and €242 million in 2014.
EU technical and financial cooperation supports Ukrainian ambitions to get closer to the European Union. The EU, its Member States and other donors support Ukraine's European choice helping the country to develop and implement its strategic plans.
The National Indicative Programme for 2011-2013 (3 years: €470 million) saw a focus on preparation for implementation of the EU-Ukraine Association Agreement (including a Deep and Comprehensive Free Trade Area) and issues such as border management, energy and climate change.