EU proposes 8 billion euro payment to Ukraine

The European Commission has proposed disbursing 8.04 billion euros to Ukraine under the Ukraine Facility programme. The amount is 264.6 million euros less than Kyiv requested. The proposal is based on a Council Implementing Decision document dated October 21.

The payment covers the fourth, seventh, eighth, and ninth instalments of financial assistance. The fourth instalment accounts for 298.7 million euros. The seventh instalment is 368.0 million euros. The eighth instalment is 95.5 million euros. The ninth instalment totals 7.28 billion euros before pre-financing deductions.

EU sources familiar with the matter indicated that the actual amount payable to Ukraine will be approximately 7.8 billion euros after deducting the repayment of previously disbursed pre-financing. The Council of the EU must approve the proposed payment. Approval is expected by the end of November.

The Commission assessed 16 of the 18 required steps for the ninth instalment as satisfactorily fulfilled. Completed reforms include the modernization of the IT system for enforcing court decisions and the approval of the Human Rights Protection Strategy. Other fulfilled steps involved adopting an anti-human trafficking programme and a strategy to reduce state ownership in banks.

Ukraine also adopted an Employment Strategy and made investments in education, healthcare, and housing for veterans with disabilities, families of fallen veterans, and internally displaced persons. The country prepared for an independent assessment of the National Energy and Utilities Regulatory Commission and implemented measures for electronic identification and water monitoring.

Two steps remain outstanding. Ukraine has appointed supervisory boards with a majority of independent members at 10 of the required 15 state-owned businesses. The country has not yet adopted a roadmap for gradually liberalising the gas and electricity markets. The Commission credited Ukraine with partial fulfilment of the supervisory board requirement and early fulfilment of an IAEA review request, adding 529.4 million euros to the payment.

Ukraine received 2.9 billion euros from the EU on October 2. The Commission noted that Ukraine satisfactorily fulfilled the relevant conditions for the partial payment of the specified instalments. The total assistance amount is 8,040,665,425 euros before clearing the pre-financing.