EU provides €105 million to Ukraine to support SMEs, small farms and implementation of reforms

EU provides €105 million to Ukraine to support SMEs, small farms and implementation of reforms

Three new financing agreements between the European Union and Ukraine were signed on 13 July, in a €105 million package to support Ukrainian small and medium-sized enterprises (SMEs), agriculture and small farm development and Ukrainian public authorities in the implementation of key reforms. These programmes will also contribute to the mitigation of the socioeconomic impact of COVID-19 and ensure further support to the health sector.

“Continued cooperation on Ukraine’s reform agenda as well as solidarity in the face of the global COVID-19 crisis are particularly important in these difficult times. This package will include three priority actions, namely, support to Small and Medium Sized enterprises, small farms and assistance to the Ukrainian comprehensive reform programme, including with regard to the health system. It is part of our COVID-19 response package for Ukraine which, in total, amounts to €190 million,” said Ambassador Matti Maasikas, Head of the EU Delegation to Ukraine .

In particular, the financing agreements provide for:

  • €60 million targeting the implementation of reforms in priority areas such as health, social policy, the financial sector, competition and transport. 
  • €25 million directed for agriculture and small farm development in Ukraine. Key elements will be improved access to loans for small farms across Ukraine under the EU4Business programme and approximation of Ukrainian legislation with the EU acquis in line with the AA/DCFTA. 
  • €20 million for Ukrainian SMEs under the EU4Business initiative. It will facilitate better business environment through harmonisation of Ukrainian and EU legislation, access to loans for business modernisation, and business consulting by international and national experts to develop entrepreneurial skills, and to enter EU and global markets. 

The second package of the EU’s 2020 support to Ukraine, which is now under preparation, will focus notably on civil society, strengthening resilience of vulnerable regions and the Green Deal.