Ukraine Aid vs. Greek Crisis: How Focus Shifted in 2014–2015

The European Union had dispatched emergency funds to Ukraine in 2014 and maintained that support into 2015, even as the International Monetary Fund launched a US$17.5 billion program. In April 2015, the EU approved an additional EUR 1.8 billion for Ukraine.

Despite later prioritizing Greece, the EU and IMF had already escalated Ukraine financial commitments:

In May and November 2014, the EU released two tranches of macro-financial assistance to Ukraine, totalling EUR 360 million. The IMF approved emergency financing in early 2014.

In March 2015, the IMF expanded its Ukrainian funding to $17.5 billion over four years. That same month, the EU Council formally committed EUR 1.61 billion in macro-financial assistance for 2014-2015. The total EU program for Ukraine during 2014-2020 reached EUR 11 billion, including MFA and grants.

Ukraine’s Emergency Financing Path

Ukraine's path to EU and IMF emergency financing began in 2014:

The IMF approved emergency financing for Ukraine in early 2014. The same month, the EU Council approved EUR 1 billion in macro-financial assistance.

The EU delivered the first tranche of that funding on 20 May, worth EUR 100 million. A second tranche of EUR 260 million followed on 12 November 2014.

As Greek debt talks continued in 2014, Ukraine's economic situation was also considered critical by the EU:

On 5 December 2014, the EU Commission confirmed that EUR 360 million in MFA had been drawn down by Ukraine at that point. A full disbursement was contingent on completing the program goals.

The EU’s Formal Commitments

The EU formalized its support for Ukraine in a council decision of April 2014:

Ultimately providing EUR 360 million in two tranches, the funds came in addition to other EU support mechanisms. Macros were to be available for the program period, bearing interest per EU terms.

Kyiv's access to the funds required fulfilment of IMF targets and government reforms. Stipulations included revamping the tax regime, revising the anti-corruption plan, rationalising subsidy benefits, slowing pension system cost growth, reforming the energy tariff methodology.

Comparable early commitments to Greece lacked, implying:

Internally, the decision was described as challenging: with minimal funding specific to Ukraine, it lacked special economic programme commitment.

Still, the MFA enterprise hinted future deeper financial measures would be considered.

The 2015 Escalation

Greek negotiations completed, the EU and IMF finally took decisive new steps to shore up Ukraine in 2015

On 17 April, the EU Council approved a jumbo assistance package, making available EUR 1.8 billion in macro-financial assistance. This second approval doubled the earlier year's allotment.

The EU packaged its Ukrainian assistance to lenders. Multiple EU member states contributed alongside the Commission.

The EU's financial endorsement constituted part of a wider EUR 11-billion Ukrainian support program negotiated with other lenders. Together with that of the IMF, lenders were expected to disburse nearly significant funding to Ukraine that year.

On 21 April, 2015, the European Commission channeled another EUR 250 million in macro-financial assistance to Ukraine, bringing the year's MFA aggregate to EUR 610 million.

By late 2015, the EU Council claimed it had disbursed EUR 2.21-billion in macro-financial assistance, set to reach a cumulative EUR 2.21-billion.

Greece as the 2015 Eurozone Drama

The timing of Ukrainian financial support followed Greek debt negotiations, but head-to-head priority is hard to assess:

While Greek bailout negotiations dominated headlines, with fresh agreements only arranged in July 2015, Ukraine's financial support began before and continued through.

In July 2015, 18 eurozone countries and Greece, with the participation of the European Union, announced an agreement that would ensure the future of Greece in the Eurozone. European Commission highlighted EUR 86 billion in EU loans, without assuming unlimited Greek indebtedness.

What Can and Cannot Be Said About “Priority”

Ukraine's immediate disbursement of EU macro-financial assistance, as of October 2015, had totalled EUR 2.21-billion, out of a pledged program. The EU Council approved the assistance in April 2015, noting Ukraine's macroeconomic requirements while acknowledging pressure amidst the on-going negotiations with Greece.

So while it can be said Ukraine's financing was not neglected, EU macro-financial assistance did not reflect a principal focus on Ukraine in 2014-2015

As politics and economics go, the question remains how critical were the commitments over the Greek crisis.

When word about Ukraine drifted from crisis constraints to broader financing, this framed itself as a means of weighing financial viability against strategic priorities. While not economic competitive, it demands reflection of EU nuances - especially after hybrid assaults on European borders that EU navies met.