EU may lend Ukraine 1.2 billion euros to help during pandemic

The European Union may allocate 1.2 billion euros to Ukraine to help limit the economic fallout caused by the coronavirus pandemic, the European Commission announced on April 22.

This is an “unprecedented amount” of financial support, according to Ukrainian President Volodymyr Zelensky, who views the EU’s decision as a move of solidarity and as evidence that Ukraine was right to choose a European vector for its development.

“When tough times come, you know who your true friends really are,” he said.

This financial help will be part of the EU’s 3-billion-euro financial assistance package, which, apart from Ukraine, will go to nine other countries, including Georgia, Moldova, Tunisia and Kosovo. However, Ukraine will receive the biggest share.

All the countries will receive a 12-month loan with “highly favorable terms” to cover vital financial needs and protect people and companies during the COVID-19 economic crisis.

Although the European Parliament and the Council of the EU will still need to vote for this decision, the European Commission states that, given the urgent need for this financial support, it is counting on “swift adoption of the proposal.”

As soon as it’s adopted, Ukraine will receive the first tranche. If Ukraine makes progress in restarting the International Monetary Fund lending program, it will receive the second tranche by the end of this year or in the first half of 2021.

Valdis Dombrovskis, executive vice president of the European Commission, believes that such steps will help to keep the entire region stable.

“As part of the EU’s global response to the coronavirus pandemic, we need to help our neighboring countries to cushion the worst of its economic impact,” said Dombrovskis.

On April 15, Radio Free Europe/Radio Liberty reported that the European Parliament planned to create a new common economic space between the six countries of the Eastern Partnership – which consists of Ukraine, Belarus, Moldova, Georgia, Armenia and Azerbaijan – and the EU. This move aims to gradually integrate countries into the EU’s energy and transport union, as well as the digital market.

A week earlier, on April 9, European Commissioner for Neighborhood and Enlargement Oliver Varhely announced that Ukraine would receive 190 million euros to strengthen its health care system, support small and medium businesses and protect those most affected by the crisis.

According to European Commissioner Paolo Gentiloni, European solidarity must go beyond the borders of the European Union.

“Because in this global crisis, we stand or fall together,” Gentiloni said.

Source: www.kyivpost.com