DISINFO: Ukraine will give control over state property in exchange for a loan from the EU
SUMMARY
The Ukrainian authorities decided to pay generously for the EU handout provided as a 600 million euro loan. According to local media reports that refer to the text of the agreement, Prime Minister Denis Shmyhal will present to the benefactors the remnants of control of the Ukrainian authorities over state property, some state procurements, and authorities. This will be done in order to receive the second tranche of the 1.2 billion euros and, thus, to plug the budget’s holes.
RESPONSE
Recurring pro-Kremlin disinformation narrative undermining the statehood of Ukraine and claiming it has been abandoned by its partners. The European Union allocates money to help Ukraine and other countries cope with the economic fallout of the COVID-19 pandemic. The EU is confident that “together with the support from the International Monetary Fund, the funds will help enhance macroeconomic stability and create space to allow resources to be allocated towards protecting citizens and to mitigate the negative socio-economic consequences of the coronavirus pandemic.” According to a press-release by the European Council, financial assistance will be provided in the form of loans on highly favourable terms. In terms of providing Ukraine with a loan from the EU, there are no conditions regarding the transfer of state ownership or management of public procurement by the EU. The EU agreed to provide a loan to Ukraine in exchange for reforms. For example, it is expected that Ukraine "has to transfer centralised procurement of medicines to the state enterprise 'Medical Procurement of Ukraine'; tax and customs reform have to continue; a new High Qualifications Commission of Judges has to be established and the 10 largest state-owned enterprises have to be corporatised".