Vice-Minister of Finance M. Liutvinskas: “It is vital that the financing of partners reaches Ukraine on time”
On 11-12 April, Vice-Minister of Finance Mindaugas Liutvinskas will attend the meetings of the Eurogroup and the Council of Finance Ministers of the European Union (ECOFIN) in Luxembourg. The meetings will focus on further financial support to Ukraine, a discussion on the use of frozen russian assets and the economic prospects of the EU.
At the ECOFIN meeting, there will be a discussion on the economic and financial impact of the russian aggression against Ukraine and the implementation of the EUR 50 billion Ukraine Facility.
“The EU, together with Western partners, must ensure sufficient and predictable financial support for Ukraine’s defence. It is positive that Ukraine has prepared and presented a reform and investment plan linked to the EU’s 50 billion financial instrument, the implementation of which will bring the country closer to EU membership. We hope that this plan will be approved expeditiously at EU level and will enable further disbursements of support,” M. Liutvinskas said.
Under the EUR 50 billion Ukraine Facility approved at EU level in February this year, interim financing of EUR 4.5 billion was disbursed to Ukraine in the form of loans on 20 March, while another EUR 1.5 billion is expected to be disbursed in April this year. A total of EUR 13 billion in loans and EUR 3 billion in grants is expected to be disbursed this year. On 20 March, Ukraine submitted to the EC for its assessment its plan, which, once approved by the Council of the EU, will serve as a basis for further payments under this instrument. The plan includes substantial reforms and investments for the country’s recovery, reconstruction, modernisation and EU membership.
The Ministers will also discuss the issue of frozen russian assets. To divert revenue from russia’s frozen assets to Ukraine’s needs, legal proposals were tabled in March this year, according to which 90 % of the estimated annual funds of around EUR 3 billion are proposed to be allocated to military assistance to Ukraine (through the European Peace Facility), 10 % — to other programmes financed by the EU budget for Ukraine, subject to annual review.
The ECOFIN meeting will exchange views on the implementation of the Recovery and Resilience Facility (RRF) and adopt Council conclusions on the mid-term evaluation of the RRF. So far, EUR 224 billion has been disbursed from the RRF instrument at EU level, of which EUR 144 billion in grants.
The EG will discuss progress in the development of the digital euro project and a discussion on the global competitiveness of the euro area.
At the same time, in preparation for the spring meetings of the World Bank and the International Monetary Fund in Washington in April, EU positions will be adopted, and exchange rate and inflation trends discussed.
Last updated: 18-04-2024
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