EU Disburses Latest EUR1.5bn Tranche Of Macro-Financial Assistance

The European Union has disbursed the latest tranche of macro-financial assistance(MFA)to Ukraine totalling EUR1.5bn. European Commission President Ursula von der Leyen: "Today we are providing another €1.5 billion to Ukraine under our annual macro-financial assistance package. We will continue helping Ukraine resist Russia’s aggression, keep its institutions and infrastructure running, and conduct crucial reforms."

• This is the third tranche provided so far by the EU from an EUR18bn pot, with the first EUR3bn tranche paid out in January and the second EUR1.5bn tranche in March.
• The EU will continue disbursing EUR1.5bn per month to Ukraine for the duration of 2023. As the funds are part of a MFA package intended to support the functioning of the Ukrainian economy, rather than simply humanitarian aid, the funds are supplied as loans at favourable rates rather than grants/aid that do not need to be paid back.
• Their nature as MFA also means they come with conditionality requirements regarding corruption, political freedoms, and rule of law standards. The provision of the first tranche in January came shortly in advance of the dismissal of a number of officialsin the Zelenskyy administration in an effort to 'clean up Ukraine'.