Poland increases the amount of concessional loan to EUR 160 million for the implementation of investment projects in Ukraine

Today, November 18, 2022, the Cabinet of Ministers of Ukraine adopted Order* on the amendment to the Agreement between the Government of Ukraine and the Government of the Republic of Poland, in particular, on increasing the amount of concessional loans to Ukraine for the implementation of investment projects, developed by the Ministry of Finance.

The decision of the Government regulates the following issues:

• Increase of the loan amount by EUR 60 million to EUR 160 million;
• Extension of the final date of concluding contracts from 12/31/2022 to 12/31/2024;
• Cancellation of the provision regarding the requirement to receive at least 60% of expenses of Polish origin for the purchase of technical means of customs control;
• Making it possible to make changes to the contracts concluded in 2017-2018 to increase their price without limiting the size of the increase.

Loan funds in the amount of EUR 160 million for investment projects will be distributed as follows:

• Ukravtodor - EUR 94.1 million (development of road infrastructure on the approaches to 5 checkpoints on the Ukrainian-Polish state border);
• State Customs Service - EUR 58.9 million (equipment of checkpoints “Shehyni”, “Krakivets”, “Rava-Ruska”, purchase of mobile scanning systems at checkpoints “Yahodyn”, “Shehyni”, “Krakivets”, “Rava-Ruska”);
• Administration of the State Border Service – EUR 7 million (purchase of unmanned aircraft systems and means of state border monitoring).

The adopted resolution also approved the draft Protocol between the Government of Ukraine and the Government of the Republic of Poland on amendments to the Treaty and authorized the Minister of Finance Sergii Marchenko to sign this Protocol.

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* Order of the Cabinet of Ministers of Ukraine “On the signing of Protocol between the Government of Ukraine and the Government of the Republic of Poland on the amendment to the Agreement between the Government of Ukraine and the Government of the Republic of Poland on extending a tied aid credit, done at Warsaw on September 9, 2015, amended by Protocol done at Warsaw on December 3, 2018, and by Protocol done at Warsaw on September 15, 2021”