FINANCIAL ASSISTANCE TO UKRAINE

The EU has pledged a €12.8 billion support package  to support the reform process in Ukraine

Programmes committed and under implementation include, inter alia:

1. €3.41 billion in loans as EU macro-financial assistance (MFA), of which €2.81 billion has already been provided. This is the largest amount of macro-financial assistance that the EU has disbursed to any non-EU country. Ukraine will be able to benefit from a final €600 million disbursement under the third MFA programme, subject to the successful implementation of the measures specified in the memorandum of understanding jointly agreed by Ukraine and the EU.
2. € 3 billion in loans signed by the European Investment Bank (EIB) between 2014 and the end of 2016 to support infrastructure development and reforms in the transport,  energy,  agriculture, education and municipal sectors, as well as substantial financial and technical support for SME development. A Memorandum of Understanding has been agreed with the Ukrainian Government on future EIB investments.
3. €2.7 billion in investment from 2014-2016 from the European Bank for Reconstruction and Development, thanks to the support of the EU and its Member States, including as donors, to help develop and reform, inter alia, the banking sector, agribusiness, and small businesses in Ukraine, including facilitating the purchase of $300 million of gas for the 2015-2016 heating season. This is in addition to nuclear safety projects.

Grants: €879.2 million in grants including:

1. A €355 million state building contract supporting the fight against corruption as well as the reforms of the public administration, the judiciary, the constitution and the electoral framework.
2. A €10 million civil society programme to reinforce its capacity to support and monitor the reform process.
3. A €110 million programme aimed at developing the private sector and fostering Ukraine’s economic recovery. Technical assistance is provided to improve the legislative framework for SMEs and promote the implementation of the Association Agreement, while the EU is supporting the setup of business advisory centres in the regions and facilitating the access of SMEs to finance.
4. A €90 million decentralisation programme supporting local governance. Local authorities receive advice and support to improve transparency, accountability and responsiveness to the needs of the population. The delivery of local administrative services throughout Ukraine is being enhanced.
5. A €15 million anti-corruption programme supporting the newly established anti-corruption institutions, strengthening parliamentary oversight and capacities of civil society and independent media to contribute to the fight against corruption.
6. A €28.5 and a €37.5 million technical cooperation facility (in 2016 and 2017 respectively) to raise Ukrainian public authorities' capacities in designing and implementing key reforms and supporting the implementation of the Association Agreement.
7. A €104 million Public Administration Reform programme to help put in place a new generation of Ukrainian public servants, organise the government according to European standards, implement best practices in policy-making and advance key sector reforms.
8. A €52.5 million Rule of Law programme providing support to justice and law enforcement reforms.
9. €76.7 million from the Instrument contributing to Stability and Peace (IcSP) from 2014 onwards to support election observation and confidence building measures, the OSCE Special Monitoring Mission, Internally Displaced Persons (IDPs), conflict-affected populations, restoration of governance and reconciliation in crisis-affected communities as well as  police reform.
10. Further European Neighbourhood Instrument 2017 programmes for a total budget of € 200 million in the areas of energy efficiency, public finance management and support to the conflict-affected areas of eastern Ukraine under government control, which will be adopted before the end of this year.

In addition

1. Sweden, Germany, Poland, and Denmark have provided bilateral loans. (Germany and Sweden having the largest programmes)
2. Finland and Eastern European states helped Ukraine provide for the internally displaced people from the Donbas.
3. Estonia, the Czech Republic, Finland, Latvia, Lithuania, and the Netherlands made substantial contributions to free media programmes and civil society..

United States

The United States has committed close to $1.5 billion in foreign assistance to Ukraine to advance reforms and strengthen democratic institutions, including some $135 million in humanitarian assistance provided through the United Nations and $3 billion in loan guarantees.

In its FY2017 budget request, the Administration asked for

1. $192.4 million in Economic Support Funds (ESF) for Ukraine to continue to address corruption, government reform, support for civil society, and other initiatives.
2. The Administration also requested $15 million in International Narcotics Control and Law Enforcement (INCLE) funding to support justice and law enforcement reform.
3. The request also included $2.9 million in International Military Education and Training (IMET) funds and
4. $42 million in Foreign Military Financing (FMF) aid for Ukraine from the Overseas Contingency Operations (OCO) account. In December 2016, the Department of State notified Congress that is was obligating $445 million to Ukraine for FY2016.

International Monetary Fund

In September 2016, the IMF voted to release $1 billion of Ukraine’s $17.5 billion bailout package, not as much as Ukraine had hoped for, but nevertheless a welcome infusion of assistance. The new funding brought total funding from the IMF so far to $7.7 billion.