Brussels, 08/04/2014 (Agence Europe) - Member states' representatives to the EU on the Coreper committee will approve EU aid of €1 billion on Wednesday 9 April, unveiled by the European Commission at the end of March in addition to €610 million already approved for the country (see EUROPE 11042).
A European source told this newsletter on Tuesday 8 March that they were not expecting any member state to object. The planned aid has already been approved by the Council of the EU's Economic and Financial Committee at a meeting of national experts, at which no country expressed opposition and only a few minor amendments were made.
General elections are being held in Ukraine on 25 May and Europe is planning to pay out the first batch of macrofinancial aid that month. The batch will comprise €100 million of the initial aid of €610 million; and €500 million from the new €1 billion aid. In addition, there will be €250 million from the European Neighbourhood Instrument.
The payments will be conditional upon final approval by the International Monetary Fund of its own aid for Ukraine of between USD 14 billion and USD 18 billion (see EUROPE 11048). An IMF preparatory meeting took place on Tuesday 8 April with a view to giving the final approval on 24 or 25 April. Twelve prior actions were attached to the IMF aid plan, but were being kept confidential as we went to press. The same strings will be attached to the €1 billion from the EU as for the IMF aid, even for the first €500 million of the €1 billion from the EU. The Commission recently sent representatives to Kiev and is still negotiating the prior actions for the second half of the aid with the Ukrainian government. A source says the measures are identical to those set for the first €500, bar one, which it is hoped will be agreed upon over the next few days.
The €1billion of EU aid was proposed using an emergency procedure and does not require formal endorsement from the European Parliament, although the EP has been kept duly informed. (MB)