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Aid was promised, but where is the money?

At the end of February of this year the EUleaders in reply to changing of Statepower in Ukraine promised to give financial help, aimed at financial system stabilization and different investment projects realization directed on development of the country economy.

Then ElmarBrok,chairman of the EPCommittee on Foreign Affairsannounced a sum in 20 billion Euros, which will be received by Ukraine for the reform implementation as soon as a new government will be formed.

At the beginning of March Jose Manuel Barroso, President of the European Commission informed that the sum of total aid would make 11 bn Euros. However, this is not all. A sum of 11 bn Euros will be allocated not immediately, but over four years and only on condition of signing of Association Agreement and implementation of all IMF requirements by Ukraine.

And only then aid will be given to Ukraine…only of about 610 million euro?! Why such number? Europe unexpectedly forgot its primary promises. After some time the EU leaders thought and decided to raise the size of macro financial aid, which will be given to Ukraine on 1 bn Euros, but the primary 610 million will be given in three tranches.

There is a rather strange “aid, aimed at financial system stabilization and effective reforms implementation”. It looks like a handout for the temporal closing of the budget gap. At the same time, according to Barroso, rest of the money will be collected by means of the European financial institutions including the European Bank for Reconstruction and Development and European Investment Bank. Hence, it raises new questions: Will this money cover those projects, which were ratified by EBRD and EIB before?

If it’s so, then it turns out that Europe promises money, which was already planned. It looks like not European way, frankly speaking, they are waiting for our firm steps, but we just promise.

Now it’s already the end of March and Ukraine didn’t get any financial aid tranche. Is it simple surrendering of Ukrainian interests or banal confirmation that Europe doesn’t charge with its promises?

There is certainly probability that Europe doesn’t have money for such “giant” aid, after the decision of allocation of 8,5bn Euros to Greece within the “second anti-recessionary program” framework. Or did our leaders decide that people in trouble are left to themselves!? It is necessary to think over that consequences of Ukrainian economic crisis may without fail influence on us. The weak state is always under the threat of its neighbor’s aggression. So let’s start to do something, while we can help.

William Green:
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