On 18 May, the European Commission announced the establishment of a macro-financial assistance package (MFA) for Ukraine of up to €9 billion. The first tranche of the aid programme consisting of a first instalment of €1 billion supplemented by a second instalment of up to €3 billion has already been introduced. On 7 September, the Commission again proposed a payment of €5 billion, which would represent the second tranche of the programme. This proposal still needs to be approved by Parliament and the Council.

Since the beginning of the war, in February 2022, Ukraine has been in urgent need of funding, which it obtains through cooperation with the international community, particularly with the EU. The latter has already intervened at the beginning of 2022 with an emergency AMF of €1.2 billion.

This European aid is in the form of long-term loans granted to Ukraine on favourable terms. Administrative costs related to loans and interest charges will be covered by the European budget.

The EU provided assistance to Ukraine even before the start of the war at the beginning of 2022. Since 2014, €5 billion has been disbursed through five MFA programmes to support reforms such as the fight against corruption, the establishment of an independent legal system or the rule of law. The EU also supports Ukraine through other instruments such as humanitarian aid, budget support, thematic programmes, investment support or technical assistance.

Thus, the AMF is conceived and used by the EU as an exceptional instrument for crisis response.

Source: European Commission proposes second €5 billion tranche of macro-financial assistance to Ukraine