Skip to main content
Economy and Finance

Ukraine

The European Commission conducts regular analysis on macroeconomic and financial developments in Ukraine and holds regular discussions with national authorities about economic policies. 

Moreover, Ukraine benefits from an EU macrofinancial assistance programme.

Macro-financial assistance

New exceptional MFA

As a part of the extraordinary effort by the EU to help Ukraine to address its immediate financial needs following the unprovoked and unjustified aggression by Russia, the Commission proposed on 1 July 2022 a new €1 billion MFA operation for Ukraine in in the form of a highly concessional long-term loan. This proposal is the first part of the exceptional MFA package of up to €9 billion announced in the Commission’s communication on Ukraine Relief and Reconstruction of 18 May 2022 and endorsed by the European Council of 23-24 June 2022. The exceptional MFA aims to provide immediate financial support in a situation of acute funding needs and to ensure the continued functioning of the most critical functions of the Ukrainian state.

The European Parliament and the Council adopted the Decision on 12 July 2022. The Commission and Ukraine signed the related Memorandum of Understanding on 19 July, which enabled a disbursement of the whole amount of this MFA in two tranches in early August 2022.

Proposal for a second tranche (€5 billion) of the exceptional MFA
English
(716.61 KB - PDF)
Download
Memorandum of Understanding
English
(1.07 MB - PDF)
Download

Emergency MFA

In the context of the escalating geopolitical tensions preceding Russia’s invasion of Ukraine, on 1 February 2022 the European Commission adopted a proposal for a Decision on providing a new emergency Macro-Financial Assistance (MFA) to Ukraine for up to EUR 1.2 billion in loans, to be disbursed in two equal instalments. The European Parliament and the Council adopted the Decision on 24 February 2022, thereby authorising the sixth MFA operation in Ukraine since 2014. The Commission and Ukraine signed the related Memorandum of Understanding on 3 March, which enabled a disbursement of the first instalment of EUR 600 million in two tranches on 11 and 18 March 2022.

The Commission and Ukraine signed the related Memorandum of Understanding on 3 March, which enabled a disbursement of the first instalment of EUR 600 million in two tranches on 11 and 18 March 2022. The outbreak of the war impeded the capacity of the Ukrainian state to implement the limited set of structural policy measures associated with the second instalment of the assistance. The Commission decided, nevertheless, to disburse the second instalment on 20 May given that the fulfilment of the conditionality had been impeded by force majeure, which the Member States endorsed.

Memorandum of Understanding between the European Union and Ukraine
English
(963.93 KB - PDF)
Download

MFA in the context of the COVID-19 pandemic

On 22 April 2020, the Commission adopted a proposal for a €3 billion MFA package to ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic. The decision was adopted by the European Parliament and the Council of the EU on 25 May 2020. As part of this package, the EU agreed on a MFA programme of EUR 1.2 billion to Ukraine. The first instalment was disbursed on 9 December 2020. The second and last instalment was disbursed on 25 October 2021, thereby successfully completing the programme. 

Memorandum of Understanding between the European Union and Ukraine
English
(784.38 KB - PDF)
Download

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. The two tranches of EUR 500 million each were disbursed in November 2018 and May 2020. With these disbursements, the EU has now provided Ukraine with €3.8 billion in MFA loans since 2014. This is the largest amount of MFA the EU has disbursed to any single partner country.

Key documents relating to MFA IV

Information Note on the disbursement of the second instalment
English
(841.24 KB - PDF)
Download
Information Note on the disbursement of the first instalment
English
(793.25 KB - PDF)
Download
Memorandum of Understanding between the European Union and Ukraine for Macro-Financial Assistance to Ukraine of up to EUR 1 billion
English
(69.54 KB - PDF)
Download

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 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 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:

Press releases

 

 

    Related EU Policies and Activities