EU sends last tranche of €18-billion assistance package to Ukraine

On December 21, the European Commission transferred the final installment of €1.5 billion to Ukraine from the macro-financial assistance package for this year. 

The head of the European Commission, Ursula von der Leyen, announced this on the social media platform X, Rubryka reports.

"We must find an agreement to keep providing Ukraine with the support it needs to recover, rebuild and reform. We stand by the side of our neighbour, friend and aspiring member," she noted.

This installment is part of the extensive macro-financial assistance (MFA) from the EU for the year 2023. According to the terms, Ukraine received a total of €18 billion euros in financing this year, disbursed in ten installments.

As Prime Minister Denys Shmyhal stated, the MFA is provided on "unprecedentedly favorable terms," supporting Ukraine's priority budget expenditures. The loan repayment term is 35 years, and the EU will compensate Ukraine for interest and other loan servicing payments.

Background

On November 9, the European Commission proposed a support package for Ukraine totaling up to €18 billion for 2023. This assistance will be provided through concessional loans, disbursed in regular installments starting from January 2023.

On December 13, EU ambassadors unanimously approved the decision to provide Ukraine with €18 billion in macro-financial assistance. However, concessions had to be made to Hungary, which had been blocking this decision.

After months of disputes, Budapest finally agreed to the package after, as they stated, receiving concessions from the EU regarding assistance to Hungary.

On November 22, Ukraine received another new installment of macro-financial assistance from the European Union, totaling €1.5 billion.