Technical and financial co-operation
EU financial co-operation with Ukraine
The EU and its Member States are the largest donors to Ukraine. Since 1991, assistance provided by the European Community alone has amounted to over € 2.5 billion. EU financial assistance to Ukraine is on the rise. Annual bilateral funding (National Action Plan) has increased from € 47 million in 2002 to € 116 million in 2009.
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 and wish to co-operate with Ukraine in helping the country's efforts to develop and implement its strategic plans and to help Ukraine offer European solutions to its problems.
As a privileged partner for the EU, and as part of the European Neighbourhood Policy, Ukraine benefits from the European Neighbourhood & Partnership Instrument (ENPI). Under this instrument the EU partnership with Ukraine has graduated from mere technical assistance to more substantial and focused support to reforms and the EU integration process.
The current National Indicative Programme for 2007-2010 (4 years: €494 million) was defined in close cooperation with the Ukrainian government and adopted in March 2007. The strategy includes new instruments, such as budget support and twinning, in order to support the Ukrainian Government’s policies, strategies and plans in line with EU standards.
Sector budget support, under which assistance is provided directly to the national budget, is designed to improve the effectiveness of the EU's financial co-operation with Ukraine. The European Union works closely with its Member States and others donors in Ukraine to ensure effectiveness of technical and financial cooperation with Ukraine.
The new National Indicative Programme for 2011-2013 (3 years: €470 million) sees a 27% increase in budget, with a focus on the entry into force of the EU-Ukraine Association Agreement (including the establishment of a Deep and Comprehensive Free Trade Area) and issues such as border management, energy and climate change.
The co-operation framework behind EU financial and technical co-operation with Ukraine is the EU-Ukraine Association Agenda adopted by the Co-operation Council in November 2009. This replaces the joint Action Plan of 2005 and prepares for and facilitates the entry into force of the Association Agreement. The Association Agenda identifies priorities which require urgent action in anticipation of the entry into force of the Agreement. It is the joint responsibility of the EU and Ukrainian sides. For 2010, a list of priorities for action was jointly agreed by Ukraine and the EU.
„More for more” is a newly declared principle of the revised European Neighborhood Policy (ENP). More reforms and (stronger) democracy in neighbouring states will mean more of the EU support and deeper integration with the Union.