09/09/2022 17:00 | Press release ECOFIN: Ministers agree on €5 billion loan for Ukraine, discuss solutions to high energy prices EU finance ministers and Central Bank governors, headed by Zbyněk Stanjura and Aleš Michl, met with representatives of the European Commission and the ECB at the informal Ecofin Council meeting in Prague today. The finance ministers discussed the impact of the Russian aggression in Ukraine on the European economies and supported the swift adoption of additional financial assistance to Ukraine amounting to EUR 5 billion. In parallel to the meeting of the energy ministers, they also discussed how to tackle high energy prices and their financial impact on state budgets. Press release 9 September 202217:00 ECOFIN: Ministers agree on €5 billion loan for Ukraine, discuss solutions to high energy prices EU finance ministers and Central Bank governors, headed by Zbyněk Stanjura and Aleš Michl, met with representatives of the European Commission and the ECB at the informal Ecofin Council meeting in Prague today. The finance ministers discussed the impact of the Russian aggression in Ukraine on the European economies and supported the swift adoption of additional financial assistance to Ukraine amounting to EUR 5 billion. In parallel to the meeting of the energy ministers, they also discussed how to tackle high energy prices and their financial impact on state budgets. A key point of the meeting of finance ministers and central bank governors was possible solutions to the current high energy prices, which are primarily discussed today by EU energy ministers in Brussels. "The current situation on energy markets requires an immediate EU-wide solution and, given the significant financial implications of the steps being considered, I consider it logical that this debate also be reflected in the Finance Ministers' meeting. Personally, I consider it reasonable to cap electricity prices at European level for electricity from sources other than gas, which generates huge profits. And also to separate electricity prices from gas prices," said Zbyněk Stanjura, adding: "At the national level, we are ready to add our own solution to the European one, so that the final energy prices will suit households and businesses in the Czech Republic." Following the agreement in July to provide EUR 1 billion, EU finance ministers in Prague agreed to accelerate the next tranche of macro-financial assistance to Ukraine in the amount of EUR 5 billion. "The new loan of EUR 5 billion will be used for the day-to-day running of the state and to ensure the operation of the country's critical infrastructure, such as offices, schools and hospitals," said Finance Minister Zbyněk Stanjura, adding: "At the next Ecofin meetings, I will push for a swift agreement on the provision of the remaining three billion euros, for which we must also agree on the division of this amount into loans and grants." The International Monetary Fund has estimated the financial assistance needed for Ukraine at a total of USD 39 billion, of which around EUR 9 billion has been pledged by the European Union. During the debate on economic assistance to Ukraine, the finance ministers also discussed Ukraine's post-war reconstruction. "Russia is waging an economic war against us and its main goal is to divide society in EU countries and fragment European unity. That is why it is appropriate to address today, in addition to financial assistance for Ukraine's day-to-day operations also its post-war reconstruction. The sooner it commences, the faster the country will get back on its feet. We are not talking about the unilateral pouring of money, but above all about enabling Czech and European companies to enter the Ukrainian market and to participate in the reconstruction of the country, which will undoubtedly bring a number of attractive business opportunities," Zbyněk Stanjura concludes. The meeting of the governors of European Central Banks took place before the joint meeting of EU Finance Ministers. The war in Ukraine and its impact on the economic situation of European countries was also discussed. EU finance ministers and Central Bank governors met with representatives of the European Commission and the ECB at the informal Ecofin Council meetin… Press material Friday 9 September 2022   ● Council of the EU   09/09/2022 19:47 | Press release | EU ministers agree statement in support of additional €5 billion assistance for Ukraine   EU finance ministers and Central Bank governors met with representatives of the European Commission and the ECB at the informal Ecofin Council meeting in Prague today. The finance ministers discussed the impact of the Russian aggression in Ukraine on the European economies and supported the swift adoption of additional financial assistance to Ukraine amounting to €5 billion. Following the agreement in July to provide €1 billion, EU finance ministers in Prague agreed to accelerate the next tranche of macro-financial assistance to Ukraine in the amount of €5 billion. "The new loan of €5 billion will be used for the day-to-day running of the state and to ensure the operation of the country's critical infrastructure, such as offices, schools and hospitals. At the next Ecofin meetings, I will push for a swift agreement on the provision of the remaining three billion euros, for which we must also agree on the division of this amount into loans and grants." Zbyněk Stanjura, Minister of Finance of Czechia This financial assistance, once adopted, will complement other EU support to Ukraine in the humanitarian, development, customs and defense fields. During the debate on economic assistance to Ukraine, the finance ministers also discussed Ukraine's post-war reconstruction. Background The EU-Ukraine Association Agreement, which entered into force on 1 September 2017, brings Ukraine and the EU closer together. In addition to promoting deeper political ties, stronger economic links and the respect for common values, the agreement has provided a framework for pursuing an ambitious reform agenda, focused on the fight against corruption, an independent judicial system, the rule of law, and a better business climate. The EU has shown continuous support for these reforms, which are crucial for attracting investments, boosting productivity and lifting the standards of living in the medium term. Among other support instruments, between 2014 and 2022 the EU supported Ukraine through several consecutive macro-financial assistance (MFA) operations that exceeded € 7 billion of loans and grants. Russia’s war in Ukraine is having a detrimental effect on Ukraine's already precarious economic and financial stability. Inter alia, it has triggered a substantial outflow of capital. Statement of the representatives of the Member States, meeting in the margins of the informal ECOFIN Council meeting, on financial support to Ukraine Council adopts additional €1 billion assistance to Ukraine (press release, 12 July 2022) EU solidarity with Ukraine (background information) EU relations with Ukraine (background information) EU response to Russia’s invasion of Ukraine (background information)