The court of auditors Europe called the “fragile results” of EU aid to Ukraine – RBC

Photo: Geert Vanden Wijngaert/AP

Despite the efforts for reforms, Ukraine is still perceived as the most corrupt country in Europe, the oligarchic clans continue to exert a dominant influence on its economy, politics and the media, and the results of EU aid is still “fragile”.

this is stated in a special report European court of auditors (ECA) “the EU Help Ukraine.” The auditors had to assess the aid effectiveness of the institutions of the European Union to Ukraine.

the report also notes that the results of measures to combat corruption in Ukraine remains to be seen.

the Auditors noted that the EU responded quickly to the crisis in 2014, highlighting the package of seven years in the amount of €11.2 billion. However, the report says, it was an emergency decision and the EU allocated funds quickly, without the preliminary coordination strategies for their use. From 2007 to 2015 financial assistance the EU amounted to €1.6 billion in grants, €3.4 billion euros was provided in the form of macro-financial loans.

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the Auditors suggested to pay more attention to the issues of public Finance management in the dialogue with Ukraine to improve the system and conditions of payment of material assistance to strengthen control over the implementation of assistance and to pay more attention to the effective implementation and sustainability of reforms. In addition, the auditors found it necessary to take action to EU aid for Ukraine in the gas sector was more effective.

the Most ambitious program of crediting of Ukraine produces the international monetary Fund (IMF) amounts to $ 17.3 billion Until September 2016, Kiev received $ 6.6 billion under this program, with the last tranche Ukraine received in August of 2015 ($ 1.7 billion), the next was supposed to be $ 1.7 billion, but was delayed, and the entire program is frozen.

on the night of September 15, 2016, the Board of Directors of the Fund approved the allocation of Ukraine the next tranche of the loan in the amount of 716 million SDR (special drawing rights of the IMF), approximately $ 1 billion. Russia’s Representative to the IMF Board, as promised earlier, Finance Minister Anton Siluanov, voted against the disbursement of a tranche. The Russian authorities did not agree that Kiev has fulfilled all conditions to receive the next credit tranche (including in connection with the refusal of arranging Russian way to solve the issue of restructuring the debt of Ukraine to Russia for $ 3 billion) and considered the resumption of lending to Ukraine by the IMF by the violation of its own rules of the Fund.

Kiev has promised to spend the allocated IMF funds for the increase in international reserves of the NBU. The Finance Ministry of Ukraine stressed that the funds “will contribute to stability of hryvnia exchange rate, and hence the stability of the financial system” of the country. The national Bank of Ukraine reported that the selection of a new IMF loan opens the country to obtain new loans in the foreign market. In particular, Ukraine may get $ 1 billion from the placement of Eurobonds under guarantee of the U.S. Treasury and to attract €600 million from the European Union.

In February 2016, the managing Director of the IMF Christine Lagarde warned the Ukrainian authorities about the possible termination of the programme of assistance to the country. She explained that the problems of corruption and influence of vested interests on politics. After these statements, the President of Ukraine Petro Poroshenko assured Lagarde that reforms in the country will continue despite a political crisis.