Ukraine Markets Daily (October 30, 2017)

Market news

  • Ukraine will get EUR 89.5 mn from the European Union to support reforms

Market comment

The UX index increased by 0.3% on Friday and the PFTS index increased by 0.4% (in UAH terms). The WIG-Ukraine index increased by 0.7%. On the interbank exchange market, the USD/UAH was down by 0.1% to UAH 26.78 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 26.83.


Ukraine will get EUR 89.5 mn from the European Union to support reforms

On Friday, October 27, two agreements on cooperation between the governments of Ukraine and the European Union (EU) were signed. First of them includes the provision of EUR 37 mn to help Ukrainian government agencies implement the Association Agreement and a free trade area with the EU, while the second one includes EUR 52.5 mn financing to support judicial reform development. Within the first project, money will be spent on bringing Ukrainian legislation into line with EU law and on reforms’ effectiveness increase within such priority areas as public administration, agriculture, land reform, support for the private sector of the economy etc. The second agreement expects the financing of some aspects of judicial reforms, particularly, the justice system, the execution of court judgments, improving access to the justice system and reform of the law enforcement system.

Our view:

These agreements proved the confidence of the European Union in the seriousness of Ukraine’s willingness to move forward through the process of Association with the EU. The support will be aimed on some of the most important changes needed to be applied for further cooperation development. We think that external control over the funds will increase the effectiveness of their usage.


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Kind regards

Research Team