Ukraine May Lose €600 Million of Aid From the European Union

Translated by Ollie Richardson


Ukraine risks losing the third tranche of macrofinancial aid from the EU of €600 million if it doesn’t fulfil the four remaining requirements in the nearest future. The ambassador of the EU in the country Hugh Mingarelli stated this on Wednesday in an interview to “European truth”.

“There are four more requirements that Ukraine hasn’t fulfilled. First – the ban on the export of the round timber still hasn’t been lifted. Second – the start of the automatic verification of e-declarations. The third – the law on the credit register of the NBU. And the fourth – verification of information on beneficial owners of companies,” said Mingarelli.

At the same time the ambassador noted that the deadline for the implementation of these requirements “expires in the near future, and this term can’t be prolonged”.

“If in several days the European Commission notes that these requirements haven’t been fulfilled – money will be lost for Ukraine,” noted Mingarelli.

Europe’s help

The European Union has rendered macrofinancial aid to Ukraine since 2014. Within the framework of the first program the EU transferred to Ukraine €610 million. The second program with a total amount of €1 billion was also realised in 2014. The third program is estimated at €1.8 billion. The credits begun to be allocated in 2015 and are calculated across 2.5 years in the form of three tranches under the condition that Ukraine implements the program of reforms agreed with the EU. All three programs are aimed at supporting the economic stabilisation of the country. The repayment period of the credits is 15 years.

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