EU releases second €600mn macro-financial assistance tranche to Ukraine

By bne IntelliNews April 5, 2017

The European Union on April 4 made a second €600mn macro-financial assistance to Ukraine to stabilise and reform its economy on April 4, President Petro Poroshenko tweeted, a day after the International Monetary Fund (IMF) released a $1bn tranche under its own support programme for the country.

The latest transfers made for a bumper week for Ukraine, with the IMF hailing the return of growth and reduction of inflation, and the doubling of the country’s international reserves, but calling for more decisive action against corruption and the stimulation of investment.

The EU tranche was transferred without conditions, despite previous delays while the Union called upon Kyiv to ensure parliament passed bills enabling a ban on timber exports to be lifted.

"The EU has disbursed the €600mn second tranche to Ukraine as part of the macro-financial assistance to stabilise the situation and reform the Ukrainian economy," Poroshenko tweeted.

According to the EU, a bid by the Ukrainian authorities to ban exports in order to establish control over deforestation and sale of timber had been unsuccessful. The EU says uncontrolled cutting and export of timber continues, but the state does not receive any direct income from this. Therefore the EU proposed to abolish the export ban and to develop a strategy for the restoration of Ukraine’s forests.

In early February 2017, European Commission President Jean-Claude Juncker said the EU would allocate a further €600mn to Ukraine even without the lifting of the timber export ban, saying it was enough to submit a corresponding bill to Parliament.

While Ukraine has an ongoing $17.5bn credit programme with the IMF, the EU in 2014 pledged to provide financial assistance totaling €11bn to Ukraine following the ouster in February that year of the regime of pro-Russian president Viktor Yanukovych. This includes €1.6bn in loans, €1.4bn in grants, €5bn from the European Bank for Reconstruction and Development, and €3bn from the European Investment Bank.

Related Articles

Ukrainian agriculture minister resigns amid uncertanty over land reform

Ukrainian Agrarian Minister Taras Kutovy announced his resignation on May 23 amid stalling efforts to push through a radical land privatisation reform in the former Soviet republic. "The ... more

Ukrainian parliament refuses to endorse preparations for land reform despite IMF demands

Ukraine's parliament, the Verkhovna Rada, has refused to adopt a bill that will enable  drafting a roadmap for the country's controversial land reform. On May 18, only 17 lawmakers ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss