Ukraine is a partner country within the European Neighbourhood Policy (ENP). This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Ukraine.
The European Commission strongly supports Ukraine in the economic field, by providing macrofinancial assistance in the form of loans, budget support in the form of grants, technical assistance and indirect support through autonomous trade measures, to name just a few. In addition, Ukraine benefits from loans from the European Investment Bank and the European Atomic Energy Community.
The European Commission is committed to actively supporting Ukraine in the challenging times it is going through. Since the outbreak of the crisis in early 2014, the European Commission has provided close to EUR 2 billion in assistance in the form of low-interest loans and budgetary grants.
In late 2014, faced with a deep economic recession and a severe confidence crisis due to the protracted armed conflict in the Eastern part of the country, Ukraine requested additional financial assistance from its multilateral and bilateral partners, including the EU. On 8 January 2015, the Commission issued a proposal for a new Macro-Financial Assistance (MFA) programme for Ukraine of up to EUR 1.8 billion, in order to alleviate the country's large external financing needs and to support the ambitious reform programme of the authorities. The European Parliament and the Council officially adopted the Decision on the third MFA programme for Ukraine on 15 April 2015. On 22 May 2015, Ukraine and the EU jointly signed a Memorandum of Understanding outlining the policy programme attached to the MFA operation. This programme largely builds on the reform agenda pursued by the Ukrainian authorities and covers a broad range of areas, including public finance management, governance and transparency, the energy sector, social safety nets, business environment and the financial sector. The Memorandum of Understanding and Loan Facility Agreement related to MFA III were ratified by the Ukrainian Parliament on 18 June 2015.
This new macrofinancial assistance programme comes on top of the two previous MFA operations for Ukraine, under which a total of EUR 1.61 billion was disbursed in 2014 and early 2015. A first Macro-Financial Assistance MFA package of EUR 610 million in loans, based on decisions from 2002 (EUR 110 million) and 2010 (EUR 500 million), was provided to Ukraine to help support economic reforms in the country and address persistent external financing difficulties. The first tranche of EUR 100 million was disbursed in May 2014, followed by a second disbursement of EUR 260 million in November 2014 and a last disbursement of EUR 250 million in April 2015.
In light of political developments in early 2014 and of the acute balance-of-payments crisis experienced by Ukraine, the Commission proposed on 19 March 2014 a second MFA operation of up to EUR 1 billion. This proposal was accompanied by a detailed evaluation of the economic issues in Ukraine and the related MFA objectives. It was endorsed through a decision adopted by the Council on 14 April 2014. The two tranches of EUR 500 million each were disbursed in June and December 2014.
On 14 November 2014, the European Commission hosted the Vienna Initiative Financial Forum on the Banking Sector in Ukraine. This Forum provides a unique platform for the Ukrainian authorities, commercial banks, international financial institutions, the EU and other key stakeholders to meet and discuss ways to drive forward much-needed reforms in the financial sector.
The EU and Ukraine hold regular macroeconomic dialogues in the framework of the Subcommittee on Economic, Financial and Statistical Issues that they jointly set up in 1998. Meetings of the Subcommittee provide both partners with an opportunity to exchange views in a frank and open manner on their respective economic situations and outlooks, and on the major structural challenges that they face.