EU Offers Ukraine Financial Aid in Exchange for Reform
The European Union is ready to boost aid to Ukraine if Kyiv pursues economic and political reforms, a senior EU official said Wednesday.
“In case of a positive scenario we will be ready to extend our assistance based on a genuine commitment for political and economic reforms, in cooperation with the IMF and other international actors,” Stefan Fule, Commissioner for Enlargement and European Neighbourhood Policy, told members of the European Parliament.
He said reform of Ukraine’s electoral system was among the main political preconditions for aid to the country, which has been rocked by large-scale anti-government street protests since November.
The announcement came shortly after The Wall Street Journal reported that the United States and EU were discussing a short-term financial aid plan for Ukraine in a move to counter pressure from Moscow.
The prospective aid package was discussed by top US and EU diplomats on the sidelines of a security conference in Munich over the weekend. The size and sequencing of the package have yet to be worked out, WSJ said.
The European loan is likely to reopen the long-term geopolitical rivalry between Russia and the West deepened by Kyiv’s rejection late last year of plans to sign key trade and association agreements with the EU.
Ukrainian President Viktor Yanukovych made a last-minute decision in November to back off from signing the landmark deals with the EU and instead signed a $15 billion aid deal with Russia. The move sparked nationwide protests that have since transformed into a broader movement seeking the president’s ouster.
After Ukraine’s government resigned last week, Russia said it would suspend its next installment of aid, giving the West an opportunity to again bid for influence in Ukraine.
Ukrainian Foreign Minister Leonid Kozhara said Kyiv had received no official proposals about the possible loan, but that discussions were possible during the ongoing visit to Ukraine by EU foreign policy chief Catherine Ashton.
Ashton met with Yanukovych on Wednesday evening, the presidential administration said in a statement.
“The parties have discussed ways of stabilizing the political situation in Ukraine, economic reforms and measures to strengthen democratic institutions,” the statement reads. “In particular, issues of maintaining security, providing an unbiased and transparent investigation into the recent events and the prospects of pursuing constitutional reform were discussed.”
Ashton told journalists after the talks that the EU had offered to assist an investigation into the recent violent clashes between police and protesters in Kyiv, in which at least two people were killed. (Cihan/Ria Novoti)
<!– –>
LEGAL DISCLAIMER: All rights of the news, pictures and videos are copyrighted by Cihan Haber Ajansı ve Reklamcılık A.Ş. None of the news, pictures and/or videos can be used partially or as a whole without written agreement or subscription.