The Association Council of Ukraine and the European Union (EU) agreed on the importance of reforms in the banking sector, in particular in relation to the nationalisation of PrivatBank, according to a joint press statement following the 6th Association Council meeting between the EU and Ukraine held on January 28.

"The sides agreed on the importance of irreversibility of reforms in the banking sector, in particular in relation to the nationalization of PrivatBank stressing the importance of bringing to justice those responsible for the large-scale fraud at PrivatBank, and the recovery of assets," the Association Council said.

In addition, EU representatives said that they would be ready to allocate EUR 500 million of the second tranche of macro-financial assistance to Ukraine after Kyiv implements prior actions under the new financing program of the International Monetary Fund. One of the key conditions is the adoption of a bill, which should reduce the risks of handing the bank back to its former shareholders, which is possible today due to the numerous litigations initiated by its former owners continuing in Ukraine.