On 9 March, the European Commission adopted a proposal for a new macro-financial assistance (MFA) programme for Ukraine worth up to €1 billion to support economic stabilisation and structural reforms.
The proposal follows a request from the Ukrainian authorities and direct discussions between Commission President Jean-Claude Juncker and Ukraine's President Petro Poroshenko. The new programme seeks to build on the progress made in supporting economic stabilisation and structural reforms under the three previous MFA operations.
The EU has so far pledged €12.8 billion to support the reform process in Ukraine, including €2.8 billion through three MFA programmes, since the onset of the crisis in 2014.
Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “Today's proposal on the fourth macro-financial assistance programme of €1 billion shows the EU's commitment to stand with the people of Ukraine.”
“This solidarity must go hand-in-hand with a continued commitment from the Ukrainian authorities to an ambitious reform agenda to ensure a stable and prosperous Ukraine,” Dombrovskis added.
According to the Commission’s press release, all disbursements under the proposed programme would be conditional on the implementation of reform measures designed to address vulnerabilities identified in the Ukrainian economy.
The MFA operations are part of the EU's wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbourhood countries experiencing severe balance-of-payments problems. In addition to MFA, the EU supports Ukraine through several other instruments, including humanitarian aid, budget support, thematic programmes, and technical assistance and blending facilities to support investment.
The Commission proposal for a fourth MFA programme to Ukraine is subject to the approval of the European Parliament and of the Council of the EU under the ordinary legislative procedure.