EU Disburses €300m in Emergency Macro-Financial Assistance to Ukraine

On Friday 11 March 2022, the European Commission disbursed €300 million in emergency Macro-Financial Assistance (MFA) to Ukraine.

The disbursement of funds has been fast-tracked to help enhance Ukraine's macroeconomic stability in the context of Russia's invasion.

This is the initial part of a first €600 million instalment under Ukraine's new €1.2 billion emergency MFA programme. A further disbursement of €300 million is expected to take place next week. 

The disbursement comes following the adoption of the European Commission's proposal for a new emergency programme by the Council of the European Union (EU) and the European Parliament. The remaining funds (€600 million) will be disbursed later in the year, in line with the Memorandum of Understanding (MoU) signed by the EU and Ukraine.

In parallel to implementing the emergency MFA programme, the Commission is preparing an additional MFA programme to further support Ukraine in the longer term, as announced by President Ursula von der Leyen at the end of January 2022.

Since 2014, the EU and European financial institutions have allocated over €17 billion in grants and loans to Ukraine. This figure includes the provision of €5.6 billion to Ukraine through five MFA programmes to support the implementation of a broad reform agenda in areas such as the fight against corruption, an independent judicial system, the rule of law and improving the business climate. Under the last MFA programme for Ukraine, the EU disbursed €1.2 billion. The programme ended in 2021, with Ukraine implementing all the conditions agreed in the MoU in the areas of public finance management, governance and the rule of law and improving the business climate.

At the same time, the Commission is working on all fronts to support Ukraine with emergency assistance. This includes both humanitarian aid and civil protection assistance. On 1 March 2022, Commission President Ursula von der Leyen announced at least €500 million of additional EU funding for response activities dealing with the humanitarian consequences of the crisis.

"An unscrupulous autocrat is trying to plunge a free and sovereign country into misfortune. [Vladimir] Putin's unjustified war exerts not only brutal military but also economic pressure on Ukraine and its brave people", commented President Ursula von der Leyen commented. "Europe stands firmly by their side. I am glad to announce that today the EU disbursed €300 million in emergency Macro-Financial Assistance to support Ukraine's finances. This is the first tranche of the €1.2 billion financial aid package I announced at the end of January. Other payments and packages will follow".

Josep Borrell, High Representative for Foreign Affairs and Security Policy, added: "With this emergency package, we are sending a strong message: The European Union stands with Ukraine and its people. Putin's senseless war against Ukraine is putting massive economic pressure on the Ukrainian people, and the European Union is acting with great speed to assist Ukraine in the darkest times in Europe since World War II".