EU's Dombrovskis signs memorandum on macro-financial assistance for Ukraine

Dombrovskis announced this in an exclusive comment to Ukrinform, adding that the memorandum now requires signature and ratification by Ukraine.

"We have finalized our negotiations with Ukraine on the Memorandum of Understanding, underpinning our macro-financial assistance program as part of the Ukraine support loan," he said.

He noted that EU member states approved the document earlier this week, "so I signed it this morning."

According to Dombrovskis, the Ukrainian side must now sign the memorandum and ratify it in the Verkhovna Rada before the funds can be disbursed.

He added that the plan is to release the first MFA instalment as early as mid-June.

To achieve this, he stressed, the Verkhovna Rada should ratify the memorandum as soon as possible, preferably early next week.

Dombrovskis explained that the memorandum sets out the conditions Ukraine must meet to receive the funds, including reforms "with a strong fiscal focus," such as domestic revenue mobilization, public spending efficiency, and public financial management systems.

He added that the conditions outlined in the memorandum were closely coordinated with the International Monetary Fund.

Dombrovskis recalled that the EU's macro-financial assistance package for 2026 totals EUR 8.35 billion, which will be provided alongside another EUR 8.35 billion under the Ukraine Facility. Together, this amounts to EUR 16.7 billion in budget support, while defense assistance is expected to total EUR 28.3 billion. This means Ukraine is set to receive EUR 45 billion in overall support in 2026, covering roughly two-thirds of the country's financial needs.

In this regard, he said, discussions are continuing with Ukraine's other partners, including the Group of Seven, particularly during meetings in Paris earlier this week, to secure additional financial support to cover the remaining third of Ukraine's needs.

Dombrovskis also said negotiations are ongoing on the loan agreement needed to raise the funds on financial markets. Asked when the talks could be completed, he replied that they could be finalized as early as next week, since the discussions are largely technical in nature.

At the same time, negotiations continue on the Ukraine Plan, whose approval is considered less urgent than the loan agreement, which is necessary for the disbursement of funds.

Speaking about Ukraine's readiness to implement the reforms outlined in the memorandum, Dombrovskis expressed optimism, noting that some measures were already being implemented during the negotiation process.

"In terms of reform conditionality, domestic revenue mobilization, if all the commitments are fully implemented, they are expected to generate about 6 billion euros of additional revenues for Ukraine. This is a medium-term target, which is starting to materialize already this year and progressively increasing," he said.

The reforms also include alignment with EU rules, among them commitments to implement the EU Anti-Tax Avoidance Directive.

Dombrovskis stressed that under the macro-financial assistance framework, the EU will not dictate how Ukraine spends the money, but rather sets conditions for receiving the funds.

He also noted that all macro-financial assistance programs contain general provisions regarding continued respect for effective democratic mechanisms and accountability measures in case of democratic "backsliding." As an example, he cited the partial suspension of funding last summer following "some rollback on the independence of anti-corruption authorities."

As reported earlier, the Council of the EU approved a EUR 90 billion financial assistance package for Ukraine for 2026-2027 on April 23. Amendments to the EU's long-term budget framework removed the final legal obstacle to providing the loan, which is expected to become a key instrument for maintaining Ukraine's macro-financial stability and supporting critical infrastructure.