EU to send first tranche of €18B macro-financial aid this week

This week, Ukraine will receive the first part of the EU's macro-financial assistance package of 18 billion euros.

Vice President of the European Commission Valdis Dombrovskis and Prime Minister of Ukraine Denys Shmyhal stated this.

"I have the honor to sign the Memorandum of Understanding on the part of the EU to provide Ukraine with European financing in 2023, up to 18 billion euros in the form of loans. The first disbursement of 3 billion will be made later this week. This will allow Ukraine to cover its most urgent needs with stable income funds during the year," Dombrovskis said.

"Ukraine and the EU have just signed a Memorandum of Understanding on the provision of €18 billion in macro-financial assistance. This week we expect to receive a tranche of €3 billion. I am grateful to Ursula von der Leyen and Valdis Dombrovskis. This will help Ukraine to maintain macro-financial stability in the future," said Denys Shmyhal.

EU Ambassador Matti Maasikas noted that this would be Ukraine's first tranche of international financial assistance in 2023.

Earlier, President of Ukraine Volodymyr Zelensky reported that Ukraine expected to receive the first tranche from the European Union's macro-financial assistance of 18 billion euros already in January.

Reference

On November 9, the European Commission proposed a support package for Ukraine for up to 18 billion euros for 2023. This assistance will be provided in the form of soft loans, which will be paid in regular installments starting in January 2023.

Members of the European Parliament approved the regulation, which allows transferring an 18 billion support package to Ukraine after Hungary vetoed the initial proposal.

On December 10, the Council of the EU approved allocating 18 billion macro-financial aid to Ukraine for its support in war conditions during 2023. 

On December 13, EU ambassadors unanimously approved the decision to provide Ukraine with 18 billion euros of macro-financial assistance. However, Hungary blocked this decision, and they had to make concessions.

It was also reported that on the evening of December 14, Poland refused to support two decisions regarding Hungary due to concerns about a separate plan for a minimum corporate tax rate and a package agreement on allocating 18 billion euros of EU aid to Ukraine.

Due to the proposal of some countries to soften the sanctions against russia under the pretext of ensuring food exports, the Baltic countries and Poland blocked the adoption of a new sanctions package of the European Union.

The decision on this aid package was made with many difficulties, but in the middle of December, the EU leaders finally reached an agreement.