Economic analysis

Macro-financial assistance

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 Commission has disbursed a total of EUR 2.8 billion in macro-financial assistance (MFA) through three consecutive programmes of low-interest loans. This represents the highest amount ever made available by the EU to a third partner. Out of these EUR 2.8 billion, 1.6 were disbursed in 2014-2015 under the first two MFA operations (MFA I and II), while 1.2 billion was released in 2015-2017 under the third MFA programme (MFA III). In March 2018, the European Commission adopted a proposal to provide an additional EUR 1 billion of MFA to Ukraine to cover the country's external financing needs and support accelerated reform implementation. This proposal was adopted by the European Parliament and the Council on 4 July 2018.

MFA I

In 2014 and early 2015, a total of EUR 1.61 billion worth of loans was disbursed by the EU to Ukraine under two successive MFA operations. A first MFA package of EUR 610 million, 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.

Key documents relating to MFA I:

MFA II

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 challenges facing Ukraine and of the objectives pursued through the MFA operation. 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.

Key documents relating to MFA II:

MFA III

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 the EU and other international partners in late 2014. On 8 January 2015, the Commission adopted a proposal for a third 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 adopted the Decision on the third MFA programme for Ukraine on 15 April 2015. The first tranche under this programme (EUR 600 million) was disbursed on 22 July 2015, while the second tranche (also EUR 600 million) was disbursed on 4 April 2017. A third tranche of EUR 600 million could have been disbursed to Ukraine subject to the implementation of 21 policy measures jointly agreed with the Ukrainian authorities. Although Ukraine fulfilled 17 policy commitments attached to this instalment, four measures, including two related to the fight against corruption, had not been implemented by the time the availability period of the assistance expired in January 2018. Under these circumstances, the Commission was not in a position to disburse the last instalment under MFA III.

Key documents relating to MFA III:

MFA IV

Following the Ukrainian authorities' request  for additional MFA to help the country cover its external financing needs, the Commission adopted a proposal for a fourth consecutive MFA programme for Ukraine of up to EUR 1 billion on 9 March 2018.  This new programme aims at supporting economic stabilisation and accelerated reform implementation in the country. The European Parliament and the Council adopted the Decision on the fourth MFA programme for Ukraine on 4 July 2018.

Key documents relating to MFA IV

Press releases

The links below provide additional information on EU-Ukraine relations: