EU and Ukraine Sign Memorandum on 5 Billion Euros, First Tranche to Be Transferred in October
The European Union and Ukraine have signed a memorandum of understanding regarding future macro-financial assistance worth 5 billion euros. The first tranche Ukraine should receive in mid-October.
This was announced simultaneously by the Prime Minister of Ukraine, Denys Shmyhal, and officials of the European Commission.
"I am pleased to sign the second Memorandum of Understanding with Ukraine since Russia began its brutal war.
This time: the EU will provide 5 bln euro for Ukraine's immediate liquidity needs, pay salaries and pensions. We will deliver the first part in mid-October, next two parts to follow later this year," wrote on Twitter Valdis Dombrovskis, Executive Vice-President of the European Commission.
Pleased to sign second Memorandum of Understanding with #Ukraine since Russia began its brutal war.
— Valdis Dombrovskis (@VDombrovskis) October 3, 2022
This time: the EU will provide €5 bln for 🇺🇦 immediate liquidity needs, pay salaries & pensions. We will deliver first part mid-October, next two parts to follow later in year. pic.twitter.com/Jxb9pVoduQ
Denys Shmyhal thanked his European colleagues for the decision.
"This is another gesture of the EU determined to support Ukraine in winning this war, rebuilding and pursuing European future," wrote on Twitter Denys Shmyhal.
The #EU has just signed a Memorandum of Understanding on providing €5B in macro-financial assistance. Grateful to @vonderleyen & @VDombrovskis for such decision. This is another gesture of the EU determine to support 🇺🇦 in winning this war, rebuilding & pursuing European future.
— Denys Shmyhal (@Denys_Shmyhal) October 3, 2022
On September 20, the Council formally adopted the decision to provide € 5 billion of additional macro-financial assistance to Ukraine, as a matter of urgency. This is the second part of the EU macro-financial assistance package for Ukraine worth 9 billion euros, which was announced by the European Commission in April and agreed by the Eurocouncil at the June summit. Ukraine received the first billion on August 1-2.
This €5 billion macro-financial assistance will be provided to Ukraine in the form of highly concessional long-term loans. In addition, the decision provides funds for the EU budget to cover the risk of losses on these additional loans and the already paid tranche of 1 billion euros.