Ukraine is a priority partner for the EU.
With the EU-Ukraine Association Agreement (AA) including a Deep and Comprehensive Free Trade Area (DCFTA) signed in 2014 and in force since 2017 after being provisionally applied, our relations have with Ukraine achieved an unprecedented level of closeness. The AA/DCFTA is the blueprint for Ukraine’s ambitious reform agenda kicked off with the 2013-2014 Maidan and for the EU’s support. It is based on shared values and commitment to respect for democratic principles, the rule of law, good governance, human rights and fundamental freedoms.
Our common goal is further economic integration and political association between Ukraine and the EU. In order to achieve that, the EU supports Ukraine through a variety of instruments.
Overall, since 2014, the EU and Financial Institutions (European Investment Bank and European Bank for Reconstruction and Development) have allocated over €17 billion in grants and loans to help Ukraine stabilise its economy, carry out comprehensive reforms, to improve the lives of its citizens as well as to mitigate the consequences of the conflict in the country’s eastern regions. This has included substantial bilateral financial and technical assistance under the European Neighbourhood Instrument (over €1.565 billion for the period 2014-2020).
Our partnership has been built on the principle that as long as Ukraine keeps reforming at an unprecedented level, the EU keeps supporting at an unprecedented level. The Multi-annual Financial Framework 2021-2027will continue the bilateral assistance to Ukraine under the “Neighbourhood, Development and International Cooperation Instrument – Global Europe” (NDICI-Global Europe). A Multi-annual Indicative Programme for the 7 years would prioritize areas of economy, rule of law, climate resilience, digital transformation, support to civil society and response to conflict. The indicative bilateral budget for the period 2021-2024 is €640 million.
In addition, EU support will be underpinned by an Economic and Investment Plan for the Eastern Partnership in grants, blending and guarantees, mobilising €1.5 billion for Ukraine, with a potential to leverage up to €6.5 billion in public and private investments. The Plan identified five flagship initiatives for Ukraine to support in particular SMEs, rural areas,connectivity, digital transformation and energy efficiency.
The EU bilateral support to Ukraine is coordinated by the European Commission’s Support Group for Ukraine (SGUA). Together with the EU Delegation to Ukraine, SGUA has developed support programmes for key reform areas (e.g. for decentralisation, the fight against corruption or strengthening the rule of law) which are often co-financed and implemented by EU Member States. The EU also supports the Ukrainian civil society through grants from different financial instruments, through contributions to the European Endowment for Democracy and a steady dialogue that informs our policymaking.
Ukraine benefits from Twinning and TAIEX, and, besides the bilateral support, from regional and multi-country programmes for the Eastern Partnership countries. In addition to the Chornobyl Shelter Fund, support is provided via the Instrument for Nuclear Safety Cooperation (INSC II) 2014-2020.
Ukraine has gained access to different European Union programmes. It has become, for instance, the frontrunner of Erasmus+ among the Eastern Partnership countries. Ukraine is also associated to several EU programmes: the Horizon Europe programme for research and innovation; the Euratom Research and Training programme; and the Creative Europe programme supporting the cultural, creative and audio-visual sectors.
Furthermore, the EU mobilised via five programmes a total of €5.61 billion in Macro-Financial Assistance for Ukraine, paid upon the fulfilment of reform conditions. Most recently, Ukraine benefited from €1.2 billion fourth MFA programme, which was part of the emergency crisis MFA package to help the neighbourhood countries to limit the economic fallout of the Covid pandemic. The first tranche of €600 million was disbursed on 9 December 2020 and the second of €600 million on 25 October 2021.
The EU has helped Ukraine deal with the humanitarian, social and economic consequences of the conflict in the eastern regions, providing €986 million since the start of the conflict. Since 2017, a €50 million programme for eastern Ukraine supports good governance and decentralisation, economic revitalisation, community security, social cohesion, health care, displaced universities and infrastructure. In 2019, the programme was topped-up by €10 million and expanded to the Sea of Azov. In 2020, the EU adopted a follow-up €30 million EU4Resilient Regions programme. It targets social capital, human security and information integrity in particularly vulnerable regions. The programme is also part of the EU’s COVID-19 response for Ukraine. The EU furthermore provides support for early recovery and co-funds the OSCE Special Monitoring Mission, to which the EU and its Member States have been the biggest contributor so far, providing about two thirds of both the mission's budget and monitors.
Large investments have been channelled to Ukraine via the EU External Investment Plan, notably the Neighbourhood Investment Platform, by pooling grant resources from the EU budget and the EU Member States and using them to leverage loans from European Financial Institutions. Since 2014, over EUR 244 million have been mobilised through the NIP to Ukraine in fields such as transport connectivity and greening, energy efficiency, support to SMEs, municipal infrastructure and local currency lending, as well as funding for alleviating the economic consequences of Covid-19. Furthermore, the implementation of the flagship initiatives identified under the Economic and Investment Plan has started, with for example the signature of loan agreements in 2021 to make public buildings more energy efficient, and to step up EBRD lending to SMEs.
Loans amounting to €5.94[1] billion have been mobilised by the European Investment Bank (EIB) since 2014 and the European Bank for Reconstruction and Development (EBRD) has currently ongoing investments worth more than €4 billion. (Note: mobilisation of loans does not necessarily mean disbursement as this depends on the degree of maturity of projects).
Via the European Union Advisory Mission (EUAM) Ukraine, Ukraine-based international experts mainly from EU Member States assist the country since December 2014 with the reform of the civilian security sector, including in the fight against corruption. Its mandate was extended until May 2024.