The European Union is introducing a new credit mechanism for Ukraine that allows funds to be used, among other things, for the purchase of Ukrainian weapons. This was stated by the EU Ambassador to Ukraine, Katarina Mathernova, who emphasized that this decision is an important innovation in the cooperation between Ukraine and the European Union.
This is reported by Business • Media
Features of the Credit and Procurement Priorities
According to Mathernova, procurement within the EU remains a priority. At the same time, when it comes to military equipment or components that are absent both in the EU and in Ukraine, purchases from third countries, including the USA, are allowed. This approach expands Ukraine’s capabilities and makes the new credit mechanism more flexible compared to previous programs.
“SAFE is a tool for member states, but for Ukraine, it is only indirectly so. However, within the framework of this loan, it is a tool specifically for Ukraine. So in this sense, it is even better than SAFE. This is money for Ukraine, not money for member states to cooperate with Ukraine,” the ambassador noted.
Requirements and Conditions of Macro-Financial Assistance
The head of the Budget Committee of the Verkhovna Rada, Roksolana Pidlasa, reported that to receive this credit, Ukraine must continue to strengthen its fight against corruption, ensure transparency in public finances, and reinforce the rule of law. All these conditions will be enshrined in a Memorandum of Understanding between the European Commission and the Ukrainian government.
The amount of annual revenues from the credit to Ukraine’s budget will be determined according to the actual needs that the Ukrainian government will outline in its financing strategy and submit for consideration in Brussels each year. Final approval of the program is expected from the EU Council and the European Parliament.
Mathernova also emphasized that the new credit is important for the approval of a new IMF program, as it helps avoid a financing deficit. She highlighted the significance of this financial support for Ukraine and its economy, and underscored that the EU credit is “a very clear signal that the EU supports Ukraine – both its military and public services, the economy, and the state as a whole.” It is important to note that the repayment of the loan will only occur if Russia pays reparations to Ukraine.