Brussels hopes to disburse the first tranche under a new long-term financial support package to Ukraine within a few weeks, but the rest of the support package will be tied to Ukraine's implementation of reforms, according to European Commissioner for Neighborhood and Enlargement Oliver Varghese, UNN reports with reference to the Financial Times.
For transitional financing... our goal is the first half of March. This is absolutely necessary, especially given what is happening in the United States
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"This way, we will get back on track... and help them cope with their financial difficulties," he added.
Once this payment has been made, work will reportedly move on to creating a more formalized "money for reforms" plan agreed between Kyiv and Brussels, under which Ukraine will receive €50 billion in remaining quarterly installments.
Ukraine is an EU candidate country, and the concept is to link current financial assistance (which Kyiv says is necessary to maintain the functioning of the state in the midst of war) to the course of reforms required of potential members of the bloc, the newspaper writes.
"Our funding is not just aid. Our funding is based on conditions and results. So, in essence, we now need to see a credible plan, a reform plan from Ukraine. In fact, everything is almost ready," Vargey said.
"So yes, it's a flexible instrument, and now it will move quickly with the transitional financing so that there is no financial deficit... it's a facility created in the fund to ensure liquidity and security of payments in Ukraine, which we will do," he added. "But other than that, it's all about implementation," the European Commissioner pointed out.
Context
On February 1, EU leaders agreed to establish a four-year, €50 billion financial assistance package for Ukraine under the EU's joint budget to support the country's economy as it continues to resist Russian invasion. The bloc's previous €1.5 billion monthly disbursement package ended in December.