Ukraine was not able to use an 8 billion Euro aid from EU

Украина не смогла использовать 8 млрд евро помощи от ЕС

About 8 billion euros of aid that was allocated by the EU is not used by Ukraine, said the head of delegation of the European Union to Ukraine Hugues Mingarelli at the conference EU: Future Simple or Future Indefinite.

“The EU allocates significant amounts of Ukraine to support reforms, but the money was not always used as best as possible. You need to understand the fact that a large portion of these funds allocated, is not used for a number of reasons,” – said the diplomat.

According to the head of the EU delegation, the main reason is the lack of quality of institutional capacity, and to speed up the process you need to “put pressure” on local authorities.

“We felt that now was not used 8 billion euros that were granted to the EU… Before asking for more money, first take the ones that are available,” – said Mingarelli.

The representatives of Ukraine and the EU in September 2018 signed a loan agreement to provide 4th programmes EU macro-financial assistance to Ukraine (MFA IV) to 1 billion euros and a Memorandum of understanding, which sets out the conditions of allocation of these funds. The amount of 1 billion euros divided into two tranches.

The first tranche with a volume of EUR 500 million, the European Commission listed to Ukraine in December 2018.

The European Union in 2014 has provided Ukraine with 2.81 billion euros macro-financial assistance. The third installment of the third program macro-financial assistance of 600 million euros was cancelled on 18 January 2018 due to the violation by the country of agreed conditions.

Ukraine has not fulfilled the four requirements, in particular, the lifting of the ban on the export of roundwood, the launch of automatic check of e-declarations, the law on credit register, the NBU, and verifying information on beneficial owners of companies.