EU allocates another 1.5 billion euros of macro-financial assistance to Kyiv

The European Union allocated the fourth tranche to Ukraine under the expanded program of macro-financial assistance in the amount of 1.5 billion euros, reported on the website of the European Commission.

“This support will help Ukraine continue to pay salaries and pensions, as well as maintain the operation of essential public services – hospitals, schools and housing for displaced people,” the statement said.

The program will also allow Kyiv to ensure macroeconomic stability and restore critical infrastructure, the EC added. They also noted that the Ukrainian authorities have made “significant progress” in strengthening the rule of law, improving financial stability, improving the functioning of the gas system and helping to improve the business climate. Ukraine’s fulfillment of these requirements is necessary to ensure the “transparent and efficient use of funds” allocated to it by the West.

Last November, the European Parliament approved a financial assistance package for Ukraine from the European Union for up to 18 billion euros for 2023. Most of this assistance will be allocated in the form of loans with a 10-year grace period, which are planned to be paid quarterly. It is expected that the amount of 18 billion euros of loans and grants will cover about half of the Ukrainian budget deficit in 2023. The previous tranche was allocated to Kyiv on April 25.

Against the backdrop of a special operation in Ukraine, Western countries imposed large-scale sanctions against the Russian Federation, and also froze Russian assets abroad. In November 2022, the head of the European Commission, Ursula von der Leyen, said that the West had blocked 300 billion euros in the reserves of the Central Bank of the Russian Federation. At the same time, she proposed to create an investment fund from these funds, and use the profits for compensation payments to Ukraine.