EU further supports Ukraine’s reform agenda and its economic recovery
18 June 2015
Today, on the occasion of his visit to
Kyiv, Commissioner Hahn has signed with Minister of Economy, Mr Abromavicius, the financing
agreement worth €55 million for the programme EU
Support to Ukraine to Re-launch the Economy (EU SURE). With
this programme, the EU's grant allocation for this
year alone is set to amount to around €200 million and it is a further sign of
the unprecedented support made available to a non-EU country in such a short
period of time, in a variety of grants and loans. In addition, also today the Verkhovna Rada of
Ukraine has ratified the "Memorandum of Understanding" for the
third macro-financial assistance package from the European Union, amounting to
€1.8 billion.
"Today's
ratification by the Ukrainian Parliament of the Memorandum of Understanding for
the new EU macro-financial support is a clear sign of the commitment of Ukraine
to its reforms path", said Valdis Dombrovskis, Vice-President for the Euro and Social
Dialogue. "The measures included in the Memorandum, in particular on the
fight against corruption and on the reform of its public administration, are key for Ukraine to become a secure and prosperous state,
despite the conflict in the East of the country. We are now working towards
disbursing the first payment of EUR 600 million in the coming weeks."
European Neighbourhood
Policy and Enlargement Negotiations Commissioner, Johannes Hahn, said: "I am glad to sign the financing
agreement for the 2015 special measure in support of private sector development
and economic recovery. This programme will support
the development of SMEs across Ukraine and early recovery of those regions most
affected by the conflict. The package will help to set up Business Support Centres in 15 regions. We hope this can help launch new
businesses and contribute to a new start for people who have had to leave their
homes due to the conflict."
This is part of a wider coordinated effort
under the Eastern Partnership to improve access to finance for SMEs and to help
them prepare for the Trade part of the Association Agreement aiming at
establishing a Deep and Comprehensive Free Trade Area which will be
provisionally applied as of 1 January 2016. The recently launched DCFTA
Facility should leverage about €1billion for Ukraine to help SMEs seize new
trade opportunities, improve access to finance and helping businesses comply
with European standards.
During his visit Commissioner Hahn will
also be announcing that, in recognition of reform efforts undertaken, Ukraine
will receive a substantial additional allocation this year under the Umbrella
fund, which means that Ukraine will benefit from at least €200 million this
year in grant funding, in line with commitments taken in March of last year.
Background
The Financing Agreement signed today is
part of the first 2015 Special Measure for Private sector Development and
Approximation approved by the European Commission on 23 April.
EU Support to Ukraine
to Re-launch the Economy - EU SURE (€55 million): The action supports national, regional and
local authorities and other stakeholders to develop and implement effective
economic development policies, including SMEs policy. One component will be the
setting up of Business Support Centres to cover 15
regions, managed by the EBRD for the development of regional capacities and
training in entrepreneurial skills in at least 15 regions of Ukraine, in
association with local business associations, banks and local/regional
authorities; particular emphasis will be put on the areas affected by the
conflict to contribute to the recovery. This action will also facilitate
Ukraine's participation in Horizon 2020.
DCFTA Facility for SMEs has been launched at the Eastern
Partnership Summit in Riga in May this year. The Facility will provide some
€200 million worth of grants from the EU budget over the next 10 years. This
contribution is expected to unlock new investments worth at least €2 billion
for the SMEs in the three DCFTA countries: Georgia, Republic of Moldova and
Ukraine. The financial means for the investments will be largely coming from
the European Bank for Reconstruction and Development (EBRD) and the European
Investment Bank (EIB).
European Commission