EU sets clear requirements to Ukraine to receive EUR 0.6 bln loan
11 October 2016
Ukraine needs to lift its ban on timber exports and resolve issues with social payments to internally displaced persons (IDPs) to get the next wire of EUR 600 mln in macro-financial assistance from the EU, the new head of the EU Delegation to Ukraine, Hugues Mingarelli, said on Oct. 10, according to Interfax-Ukraine news agency.
Ukraine received the first installment of macro-financial support (EUR 600 mln) in July 2015. The disbursement of the next wire – out of the program’s total amount of EUR 1.8 bln – has since been delayed for more than a year.
Alexander Paraschiy: The ban on timber exports was imposed by parliament in November 2015 and triggered many complaints, particularly that such restrictions contradict Ukraine’s WTO commitments. The ban’s supporters insist it’s needed to prevent uncontrolled levels of deforestation and to stimulate domestic woodworking. This marks the first time that the EU’s longstanding demand was vocalized in such a harsh manner. We have not observed any support for the restrictions in the Cabinet (and they even drew criticism from the economy ministry), but there’s intense lobbying pressure in parliament. We expect the EU’s statement improves the chances Ukraine will fulfill the loan requirements.
