EU signs MoU with Ukraine, paving way for disbursement in mid-June

BRUSSELS: The European Commission signed ‌on Thursday a memorandum of understanding with Ukraine on a macro-financial assistance program that paves the way ​for a 3.2 billion euro disbursement in mid-June, once it is ratified by the Ukrainian parliament.
The macro-financial assistance is part of the EU’s bigger, 90 billion euro financing scheme that is to keep Kyiv funded throughout 2026 and 2027 as it fends off Russia’s invasion.
“We ‌have finalized our ‌negotiations with Ukraine on ​the memorandum ‌of ⁠understanding ​underpinning our ⁠macro financial assistance program as part of the Ukraine support loan,” European Economic Commissioner Valdis Dombrovskis said.
“I signed it this morning, and now it’s still for Ukrainian side to sign, and it also needs to be ratified by the ⁠Rada in Ukraine, ...so that we can ‌then proceed with disbursements,” ‌he told reporters.
The agreement on the ​whole loan of ‌90 billion euros could be signed in a ‌matter of days, Dombrovskis said. Of the overall 90 billion euro loan, 45 billion will be disbursed this year and another 45 billion in 2027.
Of the ‌money coming this year, 28.3 billion is earmarked for military spending and 16.7 ⁠for ⁠general budget support. The general budget cash is split in half between the macro-financial assistance and the so-called Ukraine facility dedicated to Ukraine’s recovery, reconstruction, and modernization.
Dombrovskis said the macro-financial assistance money was conditional on Ukraine implementing reforms with a strong fiscal focus, to boost domestic revenue mobilization, public spending efficiency and public financial management systems.
“We also coordinated closely with the International ​Monetary Fund so that ​conditions are consistent and where necessary, let’s say additional or complementary to the IMF program,” Dombrovskis said.