The European Commission has executed three payments today in favour of the Ukrainian Government for a total of €19.075 million, of which €14.775 million for meeting agreed targets in border management and €4.3 million for environmental protection.
The payments were made on the basis of progress achieved in the Ukrainian national policies in these fields, as assessed by the European Commission, in line with the conditions agreed between the EU and the Ukrainian Government in the Financing Agreement (FA) signed in 2011.
The Commission’s assessment showed that Ukraine fulfilled five conditions (performance indicators) out of total nine in implementing the Environment Sector Budget Support Programme, for example the development of regional programmes on environmental protection or simplification of the environmental authorisation system. Some indicators like modernisation of the waste management infrastructure or stabilising the emissions of pollutants and greenhouse emissions in the air did not meet the targets agreed in the FA. Therefore €4.3 million out of a potential €10 million was paid.
Assessment of the eleven specific conditions foreseen in the FA for the Border ManagementSector Policy showed that Ukraine partially or fully fulfilled seven conditions out of total eleven including the establishment of the eCustoms system and decrease by 20% waiting time at state border. Some indicators such as decreasing the level of corruption, progress in border demarcationor creating telecommunication and online networks between the border guard and the customs were not achieved. Therefore €9.75 million out of a potential €17 million was paid as a first variable tranche in addition to a fixed tranche of €5 million.
Mr Andrew Rasbash, the Head of Co-operations in the EU Delegation to Ukraine, said, “These very timely payments are part of the ongoing cooperation between Ukraine and the EU. The precise amounts reflect reform “performance” in previous years… The relatively limited amount paid (€13 million was “lost”) reflects the fact that agreed targets for sectorial reform were not met to a very significant extent…”
Background: How does the European Commission provide budget support?
The Commission generally provides budget support using a combination of fixed (general) tranches linked to eligibility criteria, and variable (specific) tranches that are also linked to progress in meeting agreed targets in for example health, education, or public financial management. Budget support involves policy dialogue, financial transfers to the national treasury of the partner country, performance assessment and capacity-building, based on partnership and mutual accountability. It should not be seen as an end in itself, but as a means of delivering better aid and achieving sustainable development objectives by fostering partner countries’ ownership of development policies and reforms. It addresses the source, not just the symptoms, of under-development, and provides the platform on which to engage in a broad policy dialogue with partner country on key development issues.
For more information on EU-Ukraine Cooperation projects, please contact the EU Delegation to Ukraine: