EU adopts €1.2B assistance to Ukraine

The Council of the EU approved a proposal from the European Commission to provide Ukraine with additional emergency macro-financial assistance in the amount of EUR 1.2 billion.

This is stated in a press release on the institution's website.

It is noted that the Council finalized the adoption only 21 days after the Commission presented its proposal.

"The EU has acted swiftly and decisively to help Ukraine. Within 21 days, we completed the necessary work, which means that €1.2 billion macro-financial assistance can now reach Ukraine," said Bruno Le Maire, French Minister for Economic Affairs, Finance and Recovery.

As noted, the EU fast-tracked the economic assistance to Ukraine, as the current geopolitical tensions are having a detrimental effect on Ukraine's economic and financial stability. Persistent security threats have already triggered a substantial outflow of capital. Ukraine is losing access to international capital markets due to the heightened geopolitical uncertainty and its impact on the economic situation.

As reported, on February 11, the Permanent Representatives Committee (COREPER) supported the European Commission's proposal to provide additional emergency macro-financial assistance to Ukraine to the tune of EUR 1.2 billion.

The EU provides new emergency macro-financial assistance to Ukraine in response to geopolitical tensions around the country which have had a detrimental effect on its economy and financial stability. Ongoing security threats posed by Russia have led to significant capital outflows and lost access to international capital markets.

The emergency macro-financial assistance is provided for a period of 12 months and will consist of two tranches.

Minister of Finance of Ukraine Serhiy Marchenko said that Ukraine might get the first tranche of the macro-financial assistance loan from the European Union in the amount of EUR 600 million in late March or early April this year.