European Commission offers €11bn package to Ukraine

The European Commission has announced a package of support identifying a number of concrete measures to assist economically and financially Ukraine.

These measures will be presented to the EU Heads of State and Government ahead of their extraordinary meeting on Thursday 6 March.

“The most immediate priority for the EU is to contribute to a peaceful solution to the current crisis, in full respect of international law”, said President Barroso. “In parallel, the international community should mobilise to help Ukraine stabilise its economic and financial situation.

“The European Commission is proposing today a package designed to assist a committed, inclusive and reforms oriented Government in rebuilding a stable and prosperous future for Ukraine. What we propose could bring overall support of at least €11 billion over the next couple of years from the EU budget and EU-based international financial institutions.”

The package of support to Ukraine sets out the main concrete measures that the Commission is proposing for the short and medium term to help stabilise the economic and financial situation in Ukraine, assist with the transition and encourage political and economic reform.

“This engagement constitutes both a response to help stabilise the country as well as to support the reform programme and further enhance ownership of the Ukrainian authorities. While some of these measures can be carried out quickly, others will require further planning and preparation. For many of them, the urgent and active support of the Council and European Parliament are necessary,” the EU report said.

Key elements of the package include:

• €3bn from the EU budget in the coming years, €1.6bn in macro financial assistance loans (MFA) and an assistance package of grants of €1.4bn;

• Up to €8bn from the European Investment Bank and the European Bank for Reconstruction and Development;

• Potential €3.5bn leveraged through the Neighbourhood Investment Facility;

• Setting up of a donor coordination platform;

• Provisional application of the Deep and Comprehensive Free Trade Area when Association Agreement is signed and, if need be, by autonomous frontloading of trade measures;

• Organisation of a High Level Investment Forum/Task Force;

• Modernisation of the Ukraine Gas Transit System and work on reverse flows, notably via Slovakia;

• Acceleration of Visa Liberalisation Action Plan within the established framework; Offer of a Mobility Partnership;

• Technical assistance on a number of areas from constitutional to judicial reform and preparation of elections.

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