The EU Council has approved a new package of macrofinancial assistance to Ukraine worth 1.2bn euros, according to a communiqué of the European institution.

"The EU will provide emergency macrofinancial assistance of 1.2 billion euros in the form of loans to strengthen stability in Ukraine. It is aimed at providing operational support in a situation of acute crisis and strengthening the resilience of Ukraine," the statement said.

The EU Council, as indicated, "finalized the adoption today, just 21 days after the European Commission submitted its proposal." "The EU accelerated this economic assistance to Ukraine because the current geopolitical tensions are detrimental to Ukraine's economic and financial stability. Constant security threats have already caused significant capital outflows. Ukraine is losing access to international capital markets due to increased geopolitical uncertainty and its impact on the economic situation," the EU Council pointed out.

"The EU acted quickly and decisively to help Ukraine. Within 21 days, we have done the necessary work, which means that macrofinancial assistance of 1.2 billion euros can go to Ukraine," Bruno Le Maire, minister of economy, finance and reconstruction of France, the presidency of the EU Council, pointed out.

It is noted that this emergency macrofinancial assistance is designed for 12 months and will consist of two payments:

The disbursement of the first tranche, subject to political preconditions and satisfactory implementation of the IMF program, will occur shortly after the approval of this proposal, after the entry into force of the Memorandum of Understanding on specific structural policy measures, which will be agreed between the European Commission on behalf of the EU and Ukraine.

The payment of the second tranche will be linked to the continued satisfactory implementation of both the IMF program and the policy measures agreed to in the Memorandum of Understanding.

"The Memorandum of Understanding underlying this emergency macrofinancial assistance operation is likely to focus on a limited number of feasible short-term policy measures in the most urgent priority areas, such as strengthening economic sustainability and stability, governance and the rule of law, and energy," the EU Council indicated.