EU to disburse EUR 105 mln in support for SMEs and reforms in Ukraine

14:25, 16 July 2020
Economy
213 0
REUTERS

"Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine Olha Stefanishyna has signed three agreements with the European Commission on the financing of new EU assistance programs for Ukraine worth EUR 105 million," the Ukrainian government said on its website on July 16.

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This funding is being provided under the EU assistance package to Ukraine, aimed at supporting small businesses, pursuing reforms and overcoming the effects of the COVID-19 epidemic.

"The assistance from the European Union will be focused on a number of areas – from strengthening the capacity of the authorities and providing expert consultation on the reforms path, to investing in small farms and innovation grants for the development of small and medium enterprises," Stefanishyna said. "The implementation of the aforesaid programs will stimulate the development of Ukraine's economy, as well as allowing more effective counteraction to healthcare challenges."

Of the sum, EUR 60 million will be allocated under the 2020 Technical Cooperation Program to increase the capacity of the authorities to carry out reforms under the Association Agreement. In particular, the ministries will receive expert support in the process of development and implementation of reforms. The program will also improve the quality of legislative processes in parliament, carry out the necessary reforms in the healthcare sector and more.

Another EUR 25 million will be channeled into the implementation of the EU Support Program for the Development of Agriculture and Small Farms in Ukraine. Under the program, small farms will be eligible for receiving additional grant support, advice and new skills for the development of their production process, as well as for the purchase of land. Besides, the program will help improve resource management in fisheries and forestries.

In addition, EUR 20 million will be allocated under the EU4BUSINESS: Support for Small and Medium Enterprises (SMEs) in Ukraine. The program provides grants for innovative projects aimed at the development of small and medium-sized enterprises, job creation and business development at the local community level, as well as improving economic policy in this area in line with international best practices.

The EU aid package to Ukraine, aimed at fighting and overcoming the consequences of the COVID-19 epidemic, is worth more than EUR 190 million. Assistance will be provided in the following key areas: supporting urgent and short-term needs in the healthcare sector; strengthening healthcare facilities, increasing the institutional capacity of the Health Ministry; and overcoming the consequences of the crisis in the social and economic spheres.

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