May 13, 2021

EU will provide Ukraine € 1.2 billion to fight COVID-19

EU will provide Ukraine € 1.2 billion to fight COVID-19

The European Commission plans to provide Ukraine with macro-financial assistance in the amount of 1.2 billion euros.

Decision The European Commission has yet to go through coordination inEuropean Parliament and the Council of the EU. However, taking into account the serious consequences of the COVID-19 pandemic for the Ukrainian economy, the country can count on the first revenues in the near future. The next tranche is expected by the end of this or the first half of next year, after Ukraine fulfills its agreements with the IMF.

Earlier the EU provided the first support packageUkraine in the amount of 80 million euros. In early April, the European Commission allocated 190 million euros to combat the spread of coronavirus infection in the country. These funds should primarily be aimed at meeting the needs of the healthcare system and supporting vulnerable categories of the population.

In addition, Ukraine is in talks withEuropean Investment Bank on opening credit lines for small and medium enterprises in the country. The crisis first hit this category of business, and it needs financial support. The program plans to allocate credit lines of 10 million in hryvnias and another 10 million in euros. This help should help businesses recover from the pandemic and save jobs for Ukrainians.

Matti Maasikas, EU Ambassador to Ukraine, said during an interview:

We cooperate with international financialinstitutions, such as the European Investment Bank, in order to open credit lines for small and medium enterprises in Ukraine. The crisis will affect us with the closure of most economies. Providing support for small businesses will play a huge role. We hope in a few weeks to inform in detail the main areas of assistance, its main elements and how it will be implemented.