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Ukraine at risk of losing EU's 600m-euro tranche

The term of the macrofinancial assistance programme is ending.

Ukraine at risk of losing EU's 600m-euro tranche
Photo: Photo: Max Trebukhov

Head of the EU Delegation to Ukraine Hugues Mingarelli has warned that Ukraine stands to lose the third tranche of the macro-financial assistance of 600m euros unless the ban on the export of round timber is lifted.

"If Ukraine does not lift the ban on the export of logs, 600m euros, the third tranche of macro-financial assistance, will be lost. The decision has to be made before the end of this year, which means you have to get the money early next year," Mingarelly said in an interview with the Ukrainian daily Segodnya published on Tuesday, 12 September.

He recalled that Ukraine had not fulfilled several other conditions necessary to receive the assistance. "There are still six or seven commitments related to the fight against corruption, social benefits for internally displaced persons in the areas of trade, energy, which Ukraine has not dealt with," Mingarelli said and warned that this money will be lost for Ukraine.

In July 2015, the European Commission on behalf of the EU decided to provide Ukraine with a loan of 600m euros, the first tranche under the new programme of macro-financial assistance to Ukraine, the total budget of which is 1.8bn euros. In the following months, the European Commission envisaged the allocation of additional 1.2bn euros on condition of the successful implementation of economic and structural reforms previously agreed between the EU and Ukraine.

The second tranche of EU macro-financial assistance to Ukraine came in April 2017, raising the total macro-financial assistance to Ukraine from Brussels to 2.81bn euros. This is the largest EU assistance to a non-member country.