Ukraine To Get New Tranche of EU's Financial Aid – Vice-President For Euro And Social Dialogue

What You Need To Know:

✅ The European Union is now in discussions with Ukraine concerning the second tranche of the micro financial assistance program, which totals 600 million euros;
✅ Ukraine is also set to receive its next IMF’s tranche because the government started to provide some “ambitious constructive reforms”;
✅ Still, the main obstacles for doing business in Ukraine concern the rule of law, predictability of legal proceedings and the judiciary system according to a survey conducted by the European Business Association in Ukraine;
✅ Valdis Dombrovskis is Vice-President for the Euro and Social Dialogue and is also in charge of Financial Stability, Financial Services and Capital Markets Union.

The European Union is now in discussions with Ukraine about the second tranche of the micro financial assistance program ,which totals 600 million euros. If the Ukrainian government fulfills the contract terms, money can be sent even this year.

“I have met with Finance Minister Olexandr Danylyuk – and we see that there is willingness and readiness from the Ukrainian government side to move forward,” Mr. Dombrovskis says.

Mr. Dombrovskis also emphasized that it was of great importance to create NABU (National Anti-Corruption Bureau of Ukraine), and that he was informed about the conflict between NABU and the Prosecutor-General’s Office. He said that work was done to clear up this misunderstanding, and the EU noticed that.

As for e-declaration, Mr. Dombrovskis claims that they are closely following parliamentary discussions and new ideas about it.

“At this stage, it is very important to let the new system work to implement what has been legislated and not start watering it down immediately,” he says.

According to Mr. Dombrovskis, the EU predicts that economic growth is somewhere between 1-2% in Ukraine this year and will be about 3% next year. He also mentions that budget shortfall and inflation are reduced. The EU and IMF admit these achievements and the “ambitious constructive reforms” of the Ukrainian government and that is why new tranches are being discussed.

“But still, security problem is the main,” says Mr. Dombrovskis.

He once again declared that the European Union could see no alternative to the Minsk Agreements and would not recognize Crimea’s annexation. Mr. Dombrovskis is convinced that to solve the conflict more diplomatic efforts are needed.

What are the contract terms for Ukraine to receive new tranches? What does the EU think about e-declaration and NABU? Can the West recognize legitimacy of the so-called Crimea elections?

Hromadske’s Angelina Kariakina spoke to Valdis Dombrovskis on September 15th, 2016 during the 13th Yalta European Strategy Annual Meeting in Kyiv.