Kyiv, 17 October 2024
Statement by Executive Vice-President Dombrovskis at the European Business Association conference: “Ukraine on the way to the EU”:
Ladies and gentlemen
Thank you for inviting me to open your conference this afternoon.
Unfortunately, I cannot be with you in Kyiv today due to my commitments in Brussels.
This is a particularly difficult time for Ukraine as it is about to enter a winter season that will be much harder than in previous years. This is due to the battlefield situation and Russia’s intensified, targeted attacks on Ukrainian energy infrastructure. It all has a significant impact on Ukraine’s economy and public finances.
In short: Ukraine urgently needs more support to survive.
The EU remains firmly committed to supporting Ukraine in every way possible. As the temperatures fall, we are stepping up our assistance to Ukraine: to keep its people warm, the power on and the economy going.
Last month, President von der Leyen announced that the EU will make a further amount of almost €160 million available for this winter. This includes €60 million in humanitarian aid – for shelters and heaters, for example – as well as around €100 million for repair works and renewables.
Then, just last week, EU countries agreed on a unique assistance package for Ukraine to respond to its urgent financing needs, using immobilised Russian state assets.
It includes a macro-financial assistance loan of up to €35 billion and a loan cooperation mechanism for G7 partners to support Ukraine. Repayment of the MFA loan, and loans from G7 partners – with a total of US $50 billion – will be ensured by funds coming from future flows of extraordinary revenues stemming from these immobilised assets.
This sends a clear signal that the Russia will pay directly for the damage caused by its aggression.
As you know, for medium-term financing, the Ukraine Facility came into force in March and is worth €50 billion. We expect that €16 billion will have been disbursed by the end of 2024.
The EU’s financial support instruments are linked to progress in reforms that will help Ukraine on its way to EU membership.
Ukraine is firmly on the right path with its reforms and close EU engagement, as shown by the first Intergovernmental Conference held between Ukraine and the EU in late June.
Ukraine’s EU accession process will be a priority for the next European Commission. We are already working to integrate Ukraine more into the EU single market with the Priority Action Plan for the Deep and Comprehensive Free Trade Area.
This will also help with the accession process.
It will benefit both the EU and Ukraine: its people and businesses, and particularly SMEs.
Along with Ukraine’s gradual alignment to EU standards, this will open up many new opportunities and accelerate the country’s economic growth.
The EU, its institutions and Member States, will stand alongside Ukraine: to stop Russia’s aggression and ensure Ukraine’s EU accession. Thank you, and I wish you a successful conference.
Source – EU Commission