EU macro-financial aid to Ukraine in 2023 tied to implementation of 20 points – media
The Memorandum of Understanding, signed on Monday by Ukraine and the EU, contains 20 points in four blocks, the progress in the implementation of which will depend on the allocation of the second and subsequent tranche of the expanded EU macro-financial assistance for $18 billion, this information of the European Pravda (Truth) publication was confirmed by an informed source in the government to Interfax-Ukraine.
European Pravda reported earlier on Monday that the 20 points were divided into four blocks: Rule of law, Energy, Structural reforms and good governance, and Macro-Financial stability.
As a source told Interfax-Ukraine, some of these points echo the Memorandum with the International Monetary Fund, where the government and the National Bank have taken on even tougher deadlines. In the case of the appointment of the Supervisory Board of Naftogaz, the document with the IMF indicates the deadline until the end of January, while the document with the EU indicates the first quarter of 2023.
The agency's interlocutor said the Rule of law section contains the most points, seven. In particular, this is about the selection in the first quarter and the appointment in the second of a new head of NABU, the restoration of the Supreme Council of Justice and the High Qualifications Commission of Judges for a term in the third quarter, taking into account the work of the Ethics Council, as well as further strengthening the capacity of the Specialized Anti-Corruption Prosecutor's Office by the end of the year.
In addition, he said it is about improving the procedure for selecting judges and secondary legislation in combating money laundering, including in terms of beneficial ownership, developing and adopting a comprehensive strategic plan for reforming the entire law enforcement sector, and criminalizing large-scale smuggling of all goods.
According to the source, there are five points in the Structural reforms and good governance section, in particular, the promotion of the reform of customs administration with a gradual improvement over the year of IT systems, personnel management and anti-corruption measures, the improvement of the selection process for independent members of the supervisory boards and boards of the largest state-owned enterprises and bringing the legislation into line with the requirements of the Law on Administrative Procedure, adopted last February and coming into force in December this year.
In the same block, the agency's interlocutor said the Action Plan for deregulation and improvement of the business climate, expected in February, the improvement of the e-construction portal and other similar norms by April, up to the digitalization of the issuance of licenses by the end of the year, as well as the gradual bringing the public procurement system into compliance with EU legislation and maintaining the central role in medical procurement of the State Enterprise "Medical Procurement of Ukraine."
The remaining two blocks have four points each, the source said. In the energy sector, he said, it is about strengthening the legal and administrative framework for the use of high standards of energy efficiency, preparing in the second quarter of the Action Plan for the restoration of the energy infrastructure destroyed by Russia with reference to the goals of the "green transition" and progress by the end of the year in the implementation of the integration roadmap electricity market with the European one.
One more point, the interlocutor of the agency said, is about improving the performance of the gas sector through the election of the Supervisory Board of NJSC Naftogaz Ukrainy, certification of the gas storage operator and the launch in the second quarter of the corporate restructuring of the gas transmission system operator of Ukraine in accordance with the agreed target model.
Finally, in the Macro-financial stability section, the source pointed out a roadmap echoing the Memorandum with the IMF for the phased abolition of temporary emergency tax measures in the first half of the year and measures to maintain the stability of the banking system. Two other items due in the third quarter, according to him, relate to improving the bankruptcy procedure, including the possibility of writing off the debts of individuals, as in the EU, and strengthening the insurance market with the National Bank of Ukraine checking the ownership structures of insurers and their compliance with prudential requirements.
The memorandum also provides for justification of the need for EU funds and reporting on their use and monitoring of the macroeconomic and fiscal situation and structural policies, the source said.