Press release
Minister McGrath to legislate for Ireland’s contributions to key funding programmes for Ukraine
Published on
Last updated on
Published on
Last updated on
Following approval by cabinet, the Minister for Finance Michael McGrath is to bring forward legislation so that Ireland can participate in a number of key financial supports to Ukraine. Taken together, these supports will add further to Ireland’s comprehensive response to the crisis.
The legislation will formally allow for Irish government contributions to EU support programmes of up to a total of €140.525 million, based on the different provisions of each support scheme involved. In addition, it provides for the possibility if required to make once-off payments of up to €35 million in relation to the work of the European Investment Bank (EIB), up to €10 million to the European Bank for Reconstruction and Development (EBRD) and up to €10 million to the Council of Europe Development Bank (CEB).
In the first instance, the legislation concerns Guarantee and Contribution Agreements in relation to EU Macro Financial Assistance programmes for 2022 and 2023 respectively. These programmes were agreed by the European Council during 2022, with full support from the Irish government as part of its steadfast commitment to the government and people of Ukraine as they face ongoing Russian aggression.
Reflecting Ireland’s role within the global international community, Minister McGrath is also taking the opportunity to provide for a new legislative provision to facilitate entry into a Contribution Agreement with International Financial Institutions (also known as Multilateral Development Banks) namely the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and the Council of Europe Development Bank (CEB) enabling a contribution to a Trust or Donor Fund established by them for the purpose of responding to a particular crisis.
This will facilitate Ireland’s timely participation in international responses by these International Financial Institutions (IFIs) to the current crisis in Ukraine and any future crises of similar magnitude.
Speaking today, the Minister said:
“This legislation will formalise Ireland’s full participation in each of these important supports to Ukraine, building further on our national responses including a further €75 million in humanitarian aid provided in Budget 2023 and our ongoing supports for approximately 80,000 Ukrainian Beneficiaries of Temporary Protection who have arrived in Ireland since February 2022.
"The importance of EU Macro Financial Assistance to Ukraine cannot be overstated. It is playing a key role in helping the Ukrainian government to maintain a basic level of state services in the most difficult and traumatic circumstances. It is vitally important that Ireland participate fully in this initiative, which demonstrates clearly the solidarity of the EU with the people of Ukraine.
"The government approval to enter into Agreements to provide EU financial assistance to Ukraine is subject to the enactment of legislation and I look forward to finalising the legislation and to its passage through the Houses of the Oireachtas.
"In addition to the provisions on EU programmes, I am taking the opportunity in this legislation to enable contributions on behalf of the state to Trust or Donor Funds established by certain International Financial Institutions for the purpose of responding to a particular crisis.”
2. Further details can be found on the work of the EIB , the EBRD and on the CEB.
3. The legislation will necessarily reflect the different financial arrangements around each support programme. It will allow for a potential Irish contribution of up to €76.9 million related to EU member state guarantees for the 2022 EU MFA, and for a contribution of up to €63.625 million related to interest rate subsidies for the 2023 EU MFA. The financial arrangements for the EU programmes also involve the 2021-2027 EU Budget (Multiannual Financial Framework), to which Ireland is a net contributor.
4. In addition, it provides for the possibility if required to make once-off payments of up to €35 million in relation to the work of the European Investment Bank (EIB), up to €10 million to the European Bank for Reconstruction and Development (EBRD) and up to €10 million to the Council of Europe Development Bank (CEB).
5. Ireland has to date welcomed approximately 80,000 Ukrainians under the Temporary Protection Directive.
6. The estimated total value of bilateral assistance (separate to EU contributions) for Ukraine committed by Ireland to date is €174.5 million.
7. €75 million was announced by Minister McGrath in Budget 2023 to address humanitarian and other needs in Ukraine, neighbouring countries and the global response to the crisis. This will include almost €32 million in direct support to Ukraine and its neighbours, as well as support to countries around the world dealing with the broader implications of the crisis. Ireland will continue to meet the humanitarian needs of affected populations in Ukraine and Moldova with a focus on women, children and the elderly. Funding will be channelled through trusted partners such as UN agencies, the International Red Cross Movement, and Irish NGO partners, with a proven capacity to deliver on the ground in Ukraine.
8. In addition, Ireland has provided an array of in-kind supports to assist Ukraine in responding to immediate needs. These comprise medical assistance and supplies including ambulances, 4,000 blood bags, 10,000 bio-protection suits and 50,000 medical protection masks, delivered via the EU’s civil protection mechanism and civil society partners; approximately 10 tonnes or 5,000 units of ready-to-eat meals and 200 units of body armour from Defence Forces stocks to Ukraine; two containerised water treatment plants to Ukraine’s State Emergency Services, and; tools, equipment and spare parts for repairing gas and electricity networks, agreed by ESB Networks and Gas Networks Ireland.