Thursday, May 15, 2014

EU, Ukraine sign aid deals worth $1.78 billion

Ukraine’s prime minister and European Union officials on Tuesday closed deals for a total of 1.3 billion euros ($1.78 billion) in EU assistance that Kiev could use to pay its energy bills, combat corruption and reform its institutions. (...)
In March, leaders of the 28-nation EU agreed on 11 billion euros in short-, medium- and long-term assistance for Ukraine. The memorandum signed Tuesday is for 1 billion euros in loans for macrofinancial assistance. Barroso said the first installment of 600 million euros would be disbursed soon, following ratification of the arrangement by Ukraine’s parliament.
EU officials told reporters the funds could be used to help pay Russia for natural gas purchases — a matter of dispute between the two countries. The EU loans were made contingent on the Ukrainian government committing itself to fiscal and economic reforms.
A separate “state-building contract program,” evaluated by the EU as worth 365 million euros, is intended to help Ukraine implement reforms, fight corruption, promote social and economic development and expand government capacity, Barroso said.

Link to Washingtonpost

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