On behalf of the Minister, Deputy McGrath, I thank Senators for their contributions and full engagement today on the Finance (State Guarantees, International Financial Institution Funds and Miscellaneous Provisions) Bill. It is a very strong signal of Ireland’s commitment to Ukraine and to ensuring it has the necessary resources to adequately support its ongoing hardship and future reconstruction. Many Members of the Oireachtas have visited Ukraine since the invasion and have seen at first hand the devastation and human impact of the war. Many of us know personally many ministers and members of parliament from Ukraine, with whom we are in regular contact. In my previous role as Minister of State with responsibility for European affairs, I was heavily involved in the responses of Ireland and the EU during 2022. As Minister of State with responsibility for sport, the Ukraine crisis also features regularly in relation to issues around Russian and Belarusian athletes. The message from our Ukrainian friends is one of relentless resilience and determination. The various supports we can give via trusted international bodies will reinforce our national response. Substantial international assistance is needed to keep Ukraine’s Government and public services going while the ground work for the eventual recovery and the reconstruction of their economy will be the legacy of the European family.
Given the scale and the complexity of the devastation in Ukraine, a sustainable solution is needed to ensure that the funding is well co-ordinated and used efficiently, and that it ties recovery and reconstruction to Ukraine’s EU accession track. While the Bill deals with supports put in place for 2022 and 2023, the European Commission’s proposed Ukraine facility will cater for short-term stated recovery needs and medium-term reconstruction and modernisation this year and beyond. The facility will be financed through a special instrument, the Ukraine reserve for €50 billion, of which €33 billion is for loans and €17 billion is for grants and provisioning of the loans. As Members have mentioned, this morning in Brussels, heads of State and Government, including the Taoiseach, agreed this facility and the funding arrangements for it. I know the House joins me in welcoming this news.
Since the start of the invasion in 2022, the EIB, as the EU’s bank, has mobilised and disbursed €1.7 billion in emergency relief to Ukraine with the support of the European Commission. The EIB has an important role in the wider EU response and it has established the EU for Ukraine, EU4U, initiative and trust fund as well as €100 million in technical assistance to Ukrainian authorities, prioritising schools and hospitals, SME support and repairing transport networks.
Member states continue to voluntarily contribute towards this package through the trust fund with almost €400 million which is expected to grow further with future commitments. In July 2023, the Minister for Finance indicated to the EIB his intention to seek approval for Ireland to make a contribution of €7 million towards the EU4U trust fund. When this Bill is enacted, it will enable the Minister for Finance to make this contribution as soon as is practicable. This legislation will provide the necessary legal basis to enable Ireland to contribute to any multilateral response. The Minister is conscious that the level of expenditure in this regard needs to be controlled and the Bill sets limits on the amount that Ireland can contribute under the terms of any single contribution agreement. In the case of the EIB, this will be capped at €35 million and €10 million for the EBRD and the CEDB. In addition, an overall cap on expenditure is set at €375 million, or €175 million for the EIB and €100 million for each of the EBRD and the CEDB. Provision is made to ensure that any repayment of sums paid in accordance with the relevant contribution agreements can be refunded to the Central Fund.
To ensure full transparency, Oireachtas approval will be required on each occasion when the State proposes to enter into a contribution agreement with an IFI.
Ireland has been one of the strongest supporters of Ukraine's EU accession aspirations. It is important, however, we back up our words with concrete actions with continued strong financial support, which should go hand in hand with Ukraine's ongoing reform efforts. As a first step, I reiterate the importance of the quick passage of the Bill to ensure Ireland can meet its EU and international commitments to support Ukraine. Again, I thank Senators for their co-operation and I hope we can move this legislation so that it can be finalised as quickly as possible.
