The European Union (EU) is extending trade protection measures for Ukrainian exports to the EU, known as autonomous trade measures, for another year.
“In solidarity with Ukraine, we have proposed extending the suspension of import duties, quotas and trade protection measures on Ukrainian exports to the EU for another year. And we are working to deepen Ukraine’s integration into the EU single market,” European Commission Vice President Valdis Dombrovskis said Tuesday at the end of a meeting of the EU Economic and Financial Ministers Council (Ecofin).
There are also plans to send Kiev a second tranche of emergency financial aid at the end of March.
“As for the EU emergency financial support for Ukraine, the second disbursement under the macrofinancial aid plus instrument, 1.5 billion euros, should be made at the end of this month,” Dombrovskis said, adding that the total financial support for Ukraine’s budget in the first quarter of this year will result in a total of 4.5 billion euros.
According to him, at the Ecofin meeting he briefed on the status of implementation in Ukraine of reforms necessary to pay the second tranche. The EC is “at the final stage of assessing the conditions for making a decision,” Dombrovskis specified.
In April 2022, the European Commission proposed that import duties on all Ukrainian exports to the EU be suspended for one year.
Last December, the EU Council approved a decision on macrofinancial assistance to Ukraine for the year 2023 in the amount of EUR 18 billion, the loan is provided with a 10-year grace period. In January, Kiev received the first tranche of €3bn. Subsequent payments will be made on a monthly basis starting from March at 1.5bn euros.
The EC believes that with these funds Ukraine will be able to continue paying salaries, pensions, support the functioning of key public institutions, including hospitals, schools and housing for displaced people. In addition, the EU assistance should allow the country to rebuild its infrastructure and maintain macroeconomic stability.
