European Commission may delay €3.7 bln tranche to Ukraine due to law on parcels

The European Commission has warned Ukraine that the next tranche of macro-financial assistance worth about €3.7 billion may be delayed if Kyiv does not pass a law abolishing the VAT exemption for cheap imported parcels, European Commission spokesperson Balazs Ujvari said, TodayPress TV reports.

The European Commission is closely following the discussions and is paying particular attention to this law, because it is part of the requirements of the macro-financial assistance program that the European Commission is implementing for Ukraine, Ujvari noted. He stressed that within the framework of this program, Ukraine shall receive €8.35 billion in 2026.

At the moment, the EU has already transferred €3.2 billion to Kyiv, and about €3.7 billion are planned to be allocated in early autumn. As per the spokesperson of the European Commission, in order to receive the second tranche, Ukraine must fulfill 12 conditions, one of which is the cancellation of the VAT exemption for international postal items of low value.

“It is important that Ukraine continues with the respective reforms so that we can carry out the disbursements as planned,” added Ujvari. He added that the aforesaid law is of essential importance for increasing the revenues of Ukraine’s state budget, and, according to the European Commission, the country currently urgently needs them.