EU finance ministers and Central Bank governors met with representatives of the European Commission and the ECB at the informal Ecofin Council meeting in Prague today. The finance ministers discussed the impact of the Russian aggression in Ukraine on the European economies and supported the swift adoption of additional financial assistance to Ukraine amounting to €5 billion.
Following the agreement in July to provide €1 billion, EU finance ministers in Prague agreed to accelerate the next tranche of macro-financial assistance to Ukraine in the amount of €5 billion.
The new loan of €5 billion will be used for the day-to-day running of the state and to ensure the operation of the country’s critical infrastructure, such as offices, schools and hospitals. At the next Ecofin meetings, I will push for a swift agreement on the provision of the remaining three billion euros, for which we must also agree on the division of this amount into loans and grants.
Zbyněk Stanjura, Minister of Finance of Czechia
This financial assistance, once adopted, will complement other EU support to Ukraine in the humanitarian, development, customs and defense fields.
During the debate on economic assistance to Ukraine, the finance ministers also discussed Ukraine’s post-war reconstruction.
The EU-Ukraine Association Agreement, which entered into force on 1 September 2017, brings Ukraine and the EU closer together. In addition to promoting deeper political ties, stronger economic links and the respect for common values, the agreement has provided a framework for pursuing an ambitious reform agenda, focused on the fight against corruption, an independent judicial system, the rule of law, and a better business climate. The EU has shown continuous support for these reforms, which are crucial for attracting investments, boosting productivity and lifting the standards of living in the medium term.
Among other support instruments, between 2014 and 2022 the EU supported Ukraine through several consecutive macro-financial assistance (MFA) operations that exceeded € 7 billion of loans and grants.
Russia’s war in Ukraine is having a detrimental effect on Ukraine’s already precarious economic and financial stability. Inter alia, it has triggered a substantial outflow of capital.