At the 10th Association Council between the EU and Ukraine on Wednesday 9 April, the European Union strengthened its support for Kyiv.
The European Commission has announced the disbursement of a further tranche of €1 billion of its exceptional macro-financial assistance (MFA) loan to Ukraine, bringing total disbursements this year to €5 billion. This loan will be repaid using funds from the frozen Russian State’s assets in the EU.
In addition, this week the EU demanded €2.1 billion in windfall profits from the Russian Central Bank’s fixed assets, held by the Central Securities Depositories (CSDs). This payment marks the second transfer of this type, following an initial instalment paid in July 2024, and covers revenue accrued during the second half of 2024. At a press conference with the Ukrainian Prime Minister, Denys Shmyhal, and the European Commissioner for Enlargement, Marta Kos, EU High Representative Kaja Kallas said that these funds would be disbursed “gradually from the end of the month”, adding that part of them – 1 billion – would support the Ukrainian defence industry.
Beyond the windfall profits, Denys Shmyhal called on Europeans to go further. “Our partners must work on a legal mechanism to ensure that Russian assets are confiscated in full”, he pleaded, explaining that the reconstruction of his country had to be carried out with Russian money.
Commissioner Marta Kos pointed out that, since the beginning of the conflict, the EU had supported Ukraine to the tune of €144 billion. Military support in particular. The High Representative said that she was working on her initiative to supply 2 million large-calibre munitions to Ukraine by 2025. According to her, this ammunition is “available on the market”.
Asked about Ukraine’s arrest of two Chinese nationals fighting for Russia in eastern Ukraine, Ms Kallas said that “this does not mean that the Chinese army is involved”. But, she added, “China is a key enabler in the Russian war. Without it, Russia would not be able to wage war at the level it does. 80% of dual-use goods imported into Russia transit through China”. And she added: “It’s clear that if China decided to stop its support, it would have an impact”.
Trade. The issue of trade was also discussed, in particular the Autonomous Trade Measures (ATMs), which expire at the beginning of June. While a number of Member States are reluctant to see these extended, the Ukrainian Prime Minister has called for an extension until the end of the year in order to “introduce the necessary changes under Article 29” of the Association Agreement between the EU and Ukraine, which covers the elimination of customs duties on imports. “The European Commission will provide a solution before the end of ATMs”, promised Ms Kos.
Enlargement. The High Representative and the Commissioner also welcomed Kyiv’s reforms. “Even in the midst of war, Ukraine has repeatedly shown its commitment to reforms” linked to EU membership, stressed Ms Kallas, adding that it was “very clear” that the country’s future lay in the EU.
“We hope to join the EU at the end of the war”, explained the Prime Minister, hoping that all the chapters of the EU accession negotiations will have been opened by the end of the year. While the review of three clusters has already been concluded, Marta Kos hoped that the review of the other clusters would be concluded by the autumn. The Prime Minister and the Commissioner are aiming to open all the chapter clusters by the end of the year, a goal thwarted by Hungary, which is vetoing the opening of the first cluster.
See the joint declaration: https://aeur.eu/f/gd3
Agreements. Alongside the EU Council, Ukraine signed five agreements with European institutions. Three of these are with the European Investment Bank (EIB) and involve support for the restoration of critical water infrastructure (Ukraine Water Recovery project), support for the restoration of critical social infrastructure, such as schools, housing and hospitals (Ukraine Recovery III project), and support for district heating (Ukreximbank project). These contracts amount to almost €300 million in loans (€100 million for each project) under the EU’s ‘Ukraine Facility’, and follow on from the guarantee agreement approved a month ago by the European Commission, which released €2 billion in investment.
Ukraine has also signed an agreement to participate in several components of the EU’s space programme, including Copernicus, and in a common market for medical countermeasures. (Original version in French by Camille-Cerise Gessant)