The European Commission announced on Monday the mobilization of one billion euros in new aid to Ukraine to help the country “cover its immediate financial needs” because of the war, caused by the Russian invasion.
The European Commission, on behalf of the European Union [UE]today disbursed the first half (€500 million) of a new €1 billion macro-financial assistance operation for Ukraine, [sendo que] tomorrow the second tranche plus 500 million euros will be mobilized, ”he announced this Tuesday in a statement.
Brussels explains that this additional macro-financial assistance of 1,000 million euros “is part of the EU’s extraordinary efforttogether with the international community, to help Ukraine meet its immediate financial needs following Russia’s unprovoked and unjustified aggression.”
The tranche now assigned is the first of a new exceptional package of up to nine billion euros announced by the community executive in mid-May and approved by the EU leaders at the summit at the end of June.
The sum complements support already provided by the EU, including a €1.2 billion emergency macro-financial assistance loan paid out in the first half of the year, which together adds up to the total EU support to Ukraine in recent months, in which the country is in an armed confrontation after the Russian invasion last February.
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These funds are made available to Ukraine in the form of long-term loans on favorable terms, seeking the macroeconomic stability of the countrywith the EU budget covering the interest costs and providing 70% guarantees.
It is up to the EU executive, on behalf of the EU, to finance itself on international capital markets and transfer the proceeds under the same conditions to Ukraine.
This financial aid is added to the support provided by the EU to Ukraine, also because of the war, on issues such as humanitarian aid, development and defense, suspension of all import duties on Ukrainian exports for one year or other solidarity initiatives, for example, to resolve transport bottlenecks so that exports, particularly of cereals, can be secured.
Since 2014, the EU granted more than 5,000 million euros to Ukraine through five macroeconomic assistance programs to support the implementation of a broad reform agenda in areas such as fighting corruption, an independent judiciary, the rule of law, and improving the business climate.
Source: Observadora
