Cabinet approved agreements enable Ukraine to attract financing from the EU

The Cabinet of Ministers of Ukraine approved three draft agreements that will enable to attract financial assistance from the European Union, in particular for the development of Ukrainian agribusiness.

According to the Prime Minister of Ukraine Denys Shmyhal, the endorsed draft deals will allow Ukraine to receive assistance totalling EUR 105 mln, of which EUR 25 mln will be allocated to the agro-industrial sector of the country.

"First, it is EU4BUSINESS. The implementation of the program will allow providing grants for regional projects for the development of small and medium-sized enterprises in the regions," the PM says. Under this agreement, Ukraine should receive EUR 20 mln.

The second agreement, according to Denys Shmyhal, is a technical cooperation program for 2020, for Ukraine to direct EUR 60 mln to strengthen institutional capacity aimed to ensure the implementation of critical reforms towards European integration (in particular, regarding the implementation of provisions of the Association Agreement and the Free Trade Area between Ukraine and the EU).

"And the third is the EU Support Program for the development of agriculture and small farms in Ukraine. Here it is important that the aid will be directed to small farms so that they can compete better and create added value," concluded Denys Shmyhal.

As a reminder, the World Bank approved a USD 350 mln First Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms that are critical to economic recovery and to help mitigate the impact of the COVID-19 pandemic.