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Ukraine receives €1.5 billion tranche of EU macro-financial assistance

Ukraine receives €1.5 billion tranche of EU macro-financial assistance Prime Minister of Ukraine Denys Shmyhal (Photo: RBC-Ukraine, Vitalii Nosach)

Ukraine has received the eighth tranche of macro-financial assistance worth 1.5 billion euros from the European Union. EU budgetary support for Ukraine in 2023 amounts to 13.5 billion euros, according to the Prime Minister of Ukraine, Denys Shmyhal.

"The overall European Union's support to Ukraine has reached around €70 bln since the russia's full scale invasion of Ukraine," he wrote.

Macrofinancial assistance

2023, the EU will provide Ukraine with 18 billion euros in macro-financial assistance. The loan repayment term is 35 years, with interest and other loan servicing payments covered by the EU instead of Ukraine.

Macrofinancial assistance is directed towards financing priority expenditures of the state budget, including social and humanitarian aspects.

The Cabinet of Ministers of Ukraine expects assistance from international partners totaling $41.4 billion in 2024. EU macro-financial assistance will amount to $9 billion.

The European Commission proposed the creation of a new instrument for Ukraine within the EU budget framework, which includes grants, loans, and guarantees to cover part of Ukraine's current expenditures and finance urgent reconstruction projects. This instrument will provide continuous financial support until 2027 and cover 45% of Ukraine's budget deficit. Creating a Ukrainian Fund with a volume of 50 billion euros is planned.