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EU Approves EUR 1 B Aid Package to Ukraine

Politics » DIPLOMACY | April 14, 2014, Monday // 16:27| Views: 1500 | Comments: 6
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Bulgaria: EU Approves EUR 1 B Aid Package to Ukraine Photo by EPA/BGNES

The EU has officially approved an aid package of EUR 1 B for Ukraine in a bid to help the interim government deal with the deep financial problems of the country.

At a meeting of EU Foreign Ministers in Luxembourg, the customs duties on Ukrainian goods were lowered in a move expected to save the country around EUR 500 M a year.

The EU Foreign Ministers also added four people on the list of 18 Ukrainians subject to an EU visa ban and asset freeze since March 5 for abuse of state funds, according to reports of The Voice of Russia.

The EU medium-term loan of almost EUR 1 B aims to help Ukraine cover its balance-of-payments needs and it supplements aid of EUR 610 M which has been approved but not yet transferred.

The reduction in customs duties for Ukrainian goods by November 1, 2014 is a unilateral measure which will not affect duties on exports from the 28 EU countries to Ukraine.

The measure is the first stage of the free trade agreement, which is to be signed between EU and Ukraine later in 2014.

The agreement is related to the Association Agreement which former President Viktor Yanukovych refused to sign in November, triggering protests which lead to his ouster.

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Tags: aid agreement, financial aid, Ukraine, Association Agreement, free trade agreement, customs duties, Viktor Yanukovych, ukraine crisis, EU foreign ministers
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» To the forumComments (6)
#6
Warfou - 15 Apr 2014 // 17:13:15

Poland had to pursue the IMF guidelines in the 90s. The welfare level sunk rapidly for a couple of years. However, after this, it started to grow rapidly. In 1989 Poland and Ukraine were on a comparable level in terms of GDP (per capita). Now the Polish GDP per capita is 3 times bigger, reaching more then a half of that of Germany. What regards "labour force exports" - no one is forced to do so, but it is estimated that, at the time being, there are already 5.000.000 Ukrainians (yes, five millions) working in Europe (among this about 1,5 Million in Poland). They earn from 3 times (Poland) up to 6 times (western Europe) of what they have at home. And they bring some sense of welfare and freedom back to Ukraine. The Maidan is one of the results of this process.

#5
Optimistic - 15 Apr 2014 // 14:42:47

To Warfou China is unlikely to want a referendum along the lines you suggest because it could cause problems in Tibet which is looking for independance.

The Government that wants to accept the IMF money and its harsh terms was not elected but forced its way to power.

If they get to implement the IMF terms it will create a very poor country next door to the EU that would become a huge source of cheap labour for EU companies.

Regions like Donetsk could become a strong country if given the chance and would not have to suffer the harsh terms that the Kiev Government, the IMF/EU/US wants to impose on the Ukranian People.

#4
Optimistic - 15 Apr 2014 // 14:34:48

To Inflation, the Government in the Ukraine should pay now as it will not last.

The protestors in the East are staying put, there are anti government protests in the West because the government is considered weak and incompotent.

And the EU is helping out with a big increase in sanctions by imposing visa bans on an extra 18 people.

#3
Warfou - 15 Apr 2014 // 13:08:10

Hard times are unevitable for Ukrainians but it will help to develop modern economy if they withstand. Even now Ukrainian agriculture and food processing industry are on a higher level than their Russian analogues and the EU is opening its huge markets to them. Russia bases on oil, gas and weapons export. Should this markets get closed, bankruptcy comes in no time. China is not an alternative, they would rather come and take the uninhabited Siberia for free than pay you billions of dollars for its resources. There are already a few millions Chinese living more or less legally on the Russian side of the border, so how about a referendum there?

#2
Inflation - 15 Apr 2014 // 09:52:47

They should pay them soon; or pay them on an agreed amount later in Rubles. Which do you prefer, Optimistic?

#1
Optimistic - 15 Apr 2014 // 08:22:31

Excellent and add that to the 1 billion America is promising and you can pay the gas bill.

Europe needs you to pay your gas bill to ensure that the gas keeps flowing to Europe without disruption.

For anything else you need to put your austerity package in place to get the big money, so increases your taxes your energy costs and cut back your government, hurt more of your people, make them even poorer like the IMF EU US want you to do.

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