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21 August 2020, 07:11
The Committee recommends that the Verkhovna Rada ratifies the agreement with the EU on EUR 1.2 billion macro-financial assistance to Ukraine
On August 21, at an extraordinary meeting, the Committee on Ukraine's
Integration into the EU considered the draft law No. 0063 of 12.08.2020
on ratification of the Memorandum and Loan Agreement between the EU and
Ukraine on macro-financial assistance from the European Union worth up
to 1.2 billion EUR. The Committee recommends that the Verkhovna Rada
approves this draft. The Decision on providing macro-financial
assistance to ten enlargement and neighbourhood countries, including
Ukraine, in the context of the COVID-19 pandemic, was proposed by the
European Commission on 22 April and adopted by the co-legislators on 25
May 2020. In early August a Memorandum of Understanding was approved by
the European Commission on behalf of the EU.
Ukraine and the EU have agreed on the policy actions to which Ukraine commits in order to receive the assistance. Specifically, there are eight policy conditions related to strengthening public finance management, governance and rule of law, competition in the gas market, improving the business climate and governance of state-owned enterprises. The assistance program will be available for a period of 12 months. Aside from the specific policy measures laid down in the Memorandum, Ukraine will also have to keep its IMF program on track. A clear commitment of Ukraine to Central Bank independence is an essential precondition for building up confidence and trust and for maintaining good cooperation between Ukraine and its international partners.
The Committee also considered two draft laws on the financing agreements between Ukraine and the European Investment Bank. The ratification of the agreements will let Ukraine receiving two loans for the repairs and construction of the roads. These are draft laws No. 0055 and No. 0056. The draft law No. 0055 provides for the possibility to obtain a loan totaling to 450 million euros. And the draft No. 0056 provides for the loan of 50 million euros for the implementation of the Ukravtodor road reconstruction project. The Committee recommends that the Verkhovna Rada approves both of these projects.
The voting in the Verkhovna Rada on the draft laws is scheduled for Tuesday, August 25.
The members of the Committee also decided to address a letter to the Prime Minister of Ukraine regarding the inadmissibility of elimination of the State Service of Ukraine for Food Safety and Consumer Protection. According to the Committee members, such a decision of the Government is a serious threat for the exports of Ukrainian foodstuff to the EU and the quality and safety of products within the country.
The State Service of Ukraine for Food Safety and Consumer Protection was established to implement the Association Agreement with the EU. European integration reforms in this area have allowed Ukraine to quickly reorient domestic exports to the demanding markets of the European Union and opened other promising markets for Ukrainian food producers. The loss of the EU market will roll the country back for many years.
Ukraine and the EU have agreed on the policy actions to which Ukraine commits in order to receive the assistance. Specifically, there are eight policy conditions related to strengthening public finance management, governance and rule of law, competition in the gas market, improving the business climate and governance of state-owned enterprises. The assistance program will be available for a period of 12 months. Aside from the specific policy measures laid down in the Memorandum, Ukraine will also have to keep its IMF program on track. A clear commitment of Ukraine to Central Bank independence is an essential precondition for building up confidence and trust and for maintaining good cooperation between Ukraine and its international partners.
The Committee also considered two draft laws on the financing agreements between Ukraine and the European Investment Bank. The ratification of the agreements will let Ukraine receiving two loans for the repairs and construction of the roads. These are draft laws No. 0055 and No. 0056. The draft law No. 0055 provides for the possibility to obtain a loan totaling to 450 million euros. And the draft No. 0056 provides for the loan of 50 million euros for the implementation of the Ukravtodor road reconstruction project. The Committee recommends that the Verkhovna Rada approves both of these projects.
The voting in the Verkhovna Rada on the draft laws is scheduled for Tuesday, August 25.
The members of the Committee also decided to address a letter to the Prime Minister of Ukraine regarding the inadmissibility of elimination of the State Service of Ukraine for Food Safety and Consumer Protection. According to the Committee members, such a decision of the Government is a serious threat for the exports of Ukrainian foodstuff to the EU and the quality and safety of products within the country.
The State Service of Ukraine for Food Safety and Consumer Protection was established to implement the Association Agreement with the EU. European integration reforms in this area have allowed Ukraine to quickly reorient domestic exports to the demanding markets of the European Union and opened other promising markets for Ukrainian food producers. The loss of the EU market will roll the country back for many years.