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Fruits of Victory: EU Parliament Approves Another 1.8 Billion Euro Loan to Ukraine

EU has managed to win Ukraine for its sphere of influence. Maybe it will soon wish it had not?

The article originally appeared at German Economic News. Translated for RI by Anita Zalaldinova

The European Parliament approved a scheme of the EU Commission under which Ukraine will receive 1.8 billion euros in additional loans. But the Ukrainian Prime Minister Arseny Yatsenyuk wants more EU loans. His focal point is the EU's chief Jean-Claude Juncker.

<figcaption>EU loans: The Trojan Horse for Ukrainians</figcaption>
EU loans: The Trojan Horse for Ukrainians

The Committee on International Trade of the EU parliament on Thursday approved the scheme of the EU Commission under which Ukraine will receive credit in the amount of 1.8 billion euros. ‘This extra money can make an important contribution to the international package to support Ukraine’, the press office of the EU Parliament quotes the Lithuanian MEPs Gabrielius Landsbergis.

The economic recession and capital flight from Ukraine are more serious than it was previously thought, said Landsbergis. In addition, the Ukrainian currency has experienced a sharp decline and the foreign exchange reserves of the country are now exhausted. At the same time Ukraine has lost access to the international bond markets, added the Lithuanian.

The loan package must still be approved by the European Parliament and the EU Council. If approved, Ukraine will receive the first tranche at the end of 2015 and the second at the beginning of 2016. The credit period is 15 years. The Kiev government must undertake economic reforms in return.

The Ukrainian Prime Minister Arseny Yatsenyuk met on Thursday in Brussels with EU Chief Jean-Claude Juncker. In a statement of the press service of the Cabinet of Ministers of Ukraine it is said: ‘In this context Arseny Yatsenyuk and Jean-Claude Juncker discussed the importance of effective financial support of the reform process by the European Commission’. Yatsenyuk wants advocacy from Juncker to gain access to other European taxpayers' money.

Ukraine has received billions in loans from the IMF and the EU last year. But they often seep into dark channels or are not properly used. Now, former senior EU politicians and SPD grandees offer a helping hand to oligarchs Firtash, Akhmetov and Pinchuk to generate new business – in a joint venture named Agency for the Modernization of Ukraine (AMU).

The highly corrupt Ukrainian oligarchs save their incomes generated from loans, contracts and other sources mainly in Cyprus. Whereas Premier Yatsenyuk is continuously busy to cover the machinations of the oligarchs and present them abroad as honourable businessmen. Therefore, the Ukrainian corruption commissioner Tetjana Chornovol packed her job in last year. Her work is useless, said Chornovol. She accused Premier Yatsenyuk of not taking action against the oligarchs in the country because of his fear of press.

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