Economic analysis
- The Impact of Labour Migration on the Ukrainian Economy, April 2020
- Towards Better Adequacy & Sustainability: A Review of Pension Systems & Pension Reforms in Eastern Partnership Countries, October 2020
- Report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2019 (page 8-9)
- Commission Staff Working document background analysis per beneficiary country accompanying the document report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2019
- Association implementation Report on Ukraine, 14 November 2017
Macro-financial assistance
Macro-Financial Assistance +
On 9 November 2022, the European Commission adopted a proposal to provide €18 billion of support in the form of loans to Ukraine for 2023 through a new MFA + instrument. The European Parliament and the Council adopted the Regulation on MFA+ instrument on 14 December 2022. Negotiations between the Commission, on behalf of the EU, and Ukraine on the conditionality attached to the disbursement of the assistance concluded successfully. The Commission and Ukraine signed the Memorandum of Understanding and the Loan Facility Agreement on 16 January, both of which entered into force on the same day. The first instalment of EUR 3 billion in loans was disbursed on 17 January 2023.
Exceptional MFA
As a part of the Union’s extraordinary support to Ukraine, namely to finance the immediate funding 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 support 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 assistance 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.
On 7 September 2022, the Commission proposed a new MFA operation of EUR 5 billion in loans under the exceptional MFA package. The MFA Decision was adopted by the European Parliament and Council on 20 September 2022. After the entry into force of the Memorandum of Understanding on 4 October, a first instalment of EUR 2 billion was disbursed to Ukraine on 18 October. The second disbursement of EUR 2.5 billion followed on 22 November 2022. The third and last payment of EUR 500 million took place on 14 December 2022.
- Decision (EU) 2022/1628 of the European Parliament and of the Council of 20 September 2022 providing exceptional macro-financial assistance to Ukraine, reinforcing the common provisioning fund by guarantees by Member States and by specific provisioning for some financial liabilities related to Ukraine guaranteed under Decision No 466/2014/EU, and amending Decision (EU) 2022/1201
- Decision (EU) 2022/1201 of the European Parliament and of the Council of 12 July 2022 providing exceptional macro-financial assistance to Ukraine
- European Council Conclusions of 23 June
- Communication of 18 May 2022 on Ukraine relief and reconstruction
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 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.
- Decision of the European Parliament and the Council of 24 February 2022
- Commission proposal for an emergency MFA to Ukraine
- Ex-ante evaluation statement (staff working document)
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.
- Decision of the European Parliament and the Council of 25 May 2020
- SWD accompanying the Commission proposal on providing MFA in the context of the COVID-19 pandemic
- Commission proposal on providing MFA in the context of the COVID-19 pandemic
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
- Legislative decision for the new MFA operation
- Commission proposal for EU macro-financial assistance to Ukraine
- Ex-ante evaluation statement on EU macro-financial assistance to Ukraine
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:
- Ex post evaluation of MFA operations in Ukraine
- Memorandum of Understanding between the European Union and Ukraine for Macro-Financial Assistance to Ukraine of up to EUR 1.8 billion
- Decision of the European Parliament and the Council of 15 April 2015 providing Macro-Financial Assistance to Ukraine (EUR 1.8 billion)
- Commission proposal for EU macro-financial assistance to Ukraine
- Ex-ante evaluation statement on EU macro-financial assistance to Ukraine
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:
- Ex post evaluation of Macro Financial Assistance Operations I & II to Ukraine
- Memorandum of Understanding between the European Union and Ukraine for Macro-Financial Assistance for Ukraine of up to EUR 1 billion
- Council decision of 14 April 2014 providing Macro-Financial Assistance to Ukraine (EUR 1 billion)
- Commission proposal for EU Macro-Financial Assistance to Ukraine
- Evaluation statement on EU Macro-Financial Assistance to Ukraine
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:
- Ex post evaluation of Macro Financial Assistance Operations I & II to Ukraine
- Memorandum of Understanding between the European Union and Ukraine for Macro-Financial Assistance for Ukraine of up to EUR 610 million
- Decision of the European Parliament and of the Council of 7 July 2010 providing Macro-Financial Assistance to Ukraine (EUR 500 million)
- Council decision of 12 July 2002 providing supplementary Macro-Financial Assistance to Ukraine (EUR 110 million)
Press releases
- 17 January 2023: Commission disburses first €3 billion to Ukraine of the up to €18 billion Macro-financial Assistance+ package
- 9 November 2022: Commission proposes stable and predictable support package for Ukraine for 2023 of up to €18 billion
- 1 August 2022: Commission disburses first tranche of the €1 billion exceptional MFA to Ukraine
- 20 May 2022: Commission disburses EUR 600 million in emergency MFA to Ukraine
- 18 March 2022: Commission disburses EUR 300 million in emergency MFA to Ukraine
- 11 March 2022:Commission disburses EUR 300 million in emergency MFA to Ukraine
- 18 OctoberCommission disburses further EUR 2 billion in exceptional MFA to Ukraine
- 1 February 2022:Commission tables proposal for €1.2 billion emergency macro-financial assistance package for Ukraine, as announced by President von der Leyen
- 11 December 2020:EU disburses €600 million in macro-financial assistance to Ukraine
- 11 August 2020:Coronavirus: Eight macro-financial assistance programmes agreed to support enlargement and neighbourhood partners
- 29 May 2020: EU approves disbursement of €500 million in macro-financial assistance to Ukraine
- 30 November 2018: EU approves disbursement of €500 million in Macro-Financial Assistance to Ukraine
- 14 September 2018: Commission signs €1 billion in Macro-Financial Assistance to support reforms in Ukraine
- 9 March 2018:European Commission proposes further EUR 1 billion in macro-financial assistance to Ukraine
- 1 December 2017: European Commission ready to consider further Macro-Financial Assistance to Ukraine, provided reform momentum is stepped up
- 16 March 2017: European Commission approves disbursement of €600 million in assistance to Ukraine
- 22 July 2015: European Commission disburses €600 million assistance to Ukraine
- 22 May 2015:EU and Ukraine sign Memorandum of Understanding for additional €1.8 billion macro-financial assistance
- 21 April 2015:Commission disburses €250 million assistance
- 8 January 2015: Commission proposes further EUR 1.8 billion in macro-financial assistance
- 3 December 2014: EUR 500 million of EU Macro-Financial Assistance disbursed
- 12 November 2014: EUR 260 million of EU Macro-Financial Assistance disbursed
- 17 June 2014:EUR 500 million of EU Macro-Financial Assistance disbursed
- 20 May 2014: First tranche of EU Macro-Financial Assistance disbursed
- 5 March 2014: European Commission's support to Ukraine