MOSCOW (Pakistan Point News / Sputnik - 19th November, 2022) The Ukrainian government is expecting to receive 2.5 billion Euros ($2.59 billion) in macro-financial aid from the European Union next week, Ukrainian Prime Minister Denis Shmyhal said on Friday.
European Commission Executive Vice-President Valdis Dombrovskis said in early November that the EU was planning to allocate 2.5 billion euros in macro-financial assistance to Ukraine by the end of November.
"Ukraine expects to receive EUR 2.5 billion of the next tranche of the EU macro-financial assistance next week. The Government of Ukraine also welcomes the decision of the European Commission to launch a new instrument of EU microfinancing for Ukraine in 2023 to the tune of EUR 18 bn," Shmyhal told a joint press conference with Dombrovskis, as quoted on a government website.
Shmyhal added that such support on the part of the EU is essential for Ukraine in given circumstances and will allow the Ukrainian government "to finance expenditures, in particular in the humanitarian and social spheres."
Ukraine is also expecting to receive the first payment under the EU's 18 billion aid package in early 2023, the prime minister added.
On October 3, Dombrovskis signed a memorandum of understanding with Ukraine on the allocation of $5 billion in tranches in October, November, and December. The tranche is part of the macro-financial support package of up to $9 billion offered by the EU to Kiev on May 18, of which $1 billion was already disbursed in August and another $2 billion allocated in October.
On November 9, the European Commission proposed to provide Ukraine with 18 billion euros in highly concessional loans for 2023. According to the commission's statement, "this stable, regular and predictable financial assistance � averaging ��1.5 billion per month � will help cover a significant part of Ukraine's short-term funding needs for 2023, which the Ukrainian authorities and the International Monetary Fund estimate at ��3 to ��4 billion per month."
On February 24, Russia launched a military operation in Ukraine following calls for help from the breakaway republics of Donetsk and Luhansk. Western countries have responded by imposing comprehensive sanctions against Moscow, while also ramping up their financial and military support for Kiev.
