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EU names conditions for release of € 600m tranche for Ukraine

Parliament should adopt two energy bills.

The European Union says the Verkhovna Rada should pass a bill that will strengthen the independence of the electricity market regulator, as well as a bill on the electricity market. This will determine whether Ukraine receives from the European Union a new tranche of macro-financial assistance in the amount of 600m euros, the vice-president of the European Commission, Maroš Šefčovič, said on 2 September.

"I am very pleased that you have expressed such optimism about the adoption of these laws in the coming weeks ... The completion of this work will enable the European Union and the European Commission provide a 600m tranche of macro-financial assistance," he said at a meeting with the Speaker of the Verkhovna Rada Andriy Parubiy.

Parubiy said the parliamentary Committee on fuel and energy complex, nuclear policy and nuclear safety will hold a meeting on 7 September, which will consider the bill on the energy regulator, while electricity market bill is already on Rada's agenda for September 8.

EC Vice-President said that the European institutions and the International Monetary Fund have long expected adoption of these laws.

The European Commission on behalf of the EU provide Ukraine a loan of 600 million euros in July 2015, which was the first tranche under the new program Ukraine macro-financial assistance with the budget of 1.8bn euros. In subsequent months, the European Commission envisaged the allocation of additional 1.2bn euros pegged to a successful implementation of economic and structural reforms agreed between the EU and Ukraine.

Ukraine has expected to receive 600m euros at the end of 2015, and another 600mn - in the beginning of 2016. That did not happen.