Home Europe European Union Agreement in the Form of an Exchange of Letters between the ...
Date: 31-May-2024 Category: Not Applicable State: Union Government Country: Europe

Agreement in the Form of an Exchange of Letters between the European Union and Ukraine on the suspension of Ukraine’s payment obligations for its participation in all Union programmes as of 1 January 2021

Issued by European Union · Ukraine

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

What it means

  • The gazette notification details an agreement in the form of an Exchange of Letters between the European Union and Ukraine regarding the suspension of Ukraine's payment obligations for its participation in all Union programmes, effective from 1 January 2021.
  • This agreement acknowledges the financial difficulties Ukraine faces due to the ongoing conflict and recognizes the importance of Ukraine's participation in EU programs for its integration into the EU.

Key Changes

  • Suspension of Ukraine's financial contribution obligations for participation in EU programs, starting from January 1, 2021.
  • The suspension applies to specific articles and annexes within the agreements associating Ukraine with various Union programs, as listed in the Annex of the agreement. These programs include Horizon Europe, Digital Europe, Fiscalis, Customs, EU4Health, Creative Europe, LIFE, Single Market Programme, Union Civil Protection Mechanism, and Connecting Europe Facility.
  • The suspension remains in effect unless lifted by either the EU or Ukraine.
  • The European Commission will assess the necessity of maintaining the suspension on a yearly basis, primarily based on information provided by the Ukrainian government.
  • Before lifting the suspension, the EU and Ukraine will attempt to amend existing Association Agreements to set Ukraine's financial contribution to zero for the years covered by the suspension.
  • Future Association Agreements concluded before the lifting of the suspension can also be subject to this suspension, with specific provisions to be suspended detailed in those agreements.
  • Either party can still request termination of an Association Agreement, but before termination, they can agree to amend the agreement to set the financial contribution to zero for the years of suspension.
  • The agreement enters into force on the first day of the second month following the date of the last written notification on the fulfillment of the necessary procedures by both parties.

Impact Analysis

Impact on Ukraine

  • Neutral: Ukraine and the EU will need to agree on amendments to existing Association Agreements to formally set the financial contribution to zero for the years of suspension.

Impact on European Union

  • Potential Negative: The EU budget will need to absorb the costs that would have been covered by Ukraine's contributions.

Suggested Action Items

  • Both Parties: Ensure that future Association Agreements concluded before the lifting of the suspension specify the exact provisions to be suspended in accordance with this agreement.

Key Entities Referenced

European Union (EU): One of the parties to the agreement, providing financial and political support to Ukraine. Ukraine: One of the parties to the agreement, benefiting from the suspension of financial obligations for participating in EU programs. European Commission: The executive branch of the EU, responsible for assessing the situation in Ukraine and deciding whether to lift the suspension. Horizon Europe Framework Programme: A research and innovation program of the EU in which Ukraine participates. Digital Europe Programme: An EU program focused on digital transformation in which Ukraine participates. FISCALIS Programme: The Union programme for cooperation in the field of taxation. CUSTOMS Programme: The Union programme for cooperation in the field of customs. EU4HEALTH Programme: An EU health program in which Ukraine participates. Creative Europe Programme: An EU program supporting the cultural and creative sectors, in which Ukraine participates. LIFE Programme: The Programme for Environment and Climate Action. Single Market Programme (SMP): An EU program to strengthen the Single Market. Union Civil Protection Mechanism: A framework for cooperation in disaster response among participating states. Connecting Europe Facility Programme: An EU program investing in infrastructure projects.
Official Source Record View Original Source →
See Full Document Text
Official Journal EN of the European Union L series 2024/1490 31.5.2024 Agreement in the Form of an Exchange of Letters between the European Union and Ukraine on the suspension of Ukraine’s payment obligations for its participation in all Union programmes as of 1 January 2021 A. Letter from the Ukrainian Government Dear President von der Leyen, Ukraine expresses its heartfelt gratitude for the unprecedented support and financial assistance provided by the European Union (EU) throughout these trying times for our country. We appreciate the measures the European Commission under your leadership has taken to assist Ukraine since the start of the Russian Federation’s full-scale war of aggression. Even amid the challenges of war, significant progress has been made following Ukraine’s application to join the EU. Additionally, Ukraine does its best to further extend the scope of its participation in the EU programmes under the current EU multiannual financial framework 2021–2027. It is noteworthy that participation in the EU programmes plays a major role in advancing Ukraine’s integration into the EU. In fact, such participation helps Ukraine develop its institutional and infrastructural capacity as well as to efficiently contribute to engaging key Ukrainian governmental agencies, public and private sector entities, NGOs and experts in interaction with European partners and policies amid the turmoil of the Russian Federation’s brutal war. At this stage, Ukraine has joined eight EU programmes. Notably, the evidence of progress in this area in 2022 is Ukraine’s association to Customs, Fiscalis, LIFE, EU4Health, Horizon Europe and the Euratom Research and Training Programme, as well as with Digital Europe Programme, which is a solid step towards the Digital Single Market. In 2021, Ukraine became part of the EU’s Creative Europe Programme. It is with deep appreciation that I extend the Ukrainian Government’s gratitude to you and to the European Commission for provisionally approving a full exemption from the contributions for Ukraine’s participation in the EU programmes for 2021 and 2022. In 2023, Ukraine is set to step up its efforts to join six additional EU programmes. Specifically, we are going to conclude agreements to associate Ukraine to the following EU programmes: Single Market (SMP), Citizens, Equality, Rights and Values (CERV), Justice (JUST) and Anti-Fraud (UAFP). Moreover, we also intend to join the Connecting Europe Facility (CEF) to expand the capacities of the EU-Ukraine Solidarity Lanes to secure the majority of Ukrainian agricultural and non- agricultural exports. Lastly, we also intend to join the Union Civil Protection Mechanism (UCPM) and EU Space Program. For this purpose, we would like to solicit your support in Ukraine’s joining the above EU programmes still this year. Given the prolongation of the war and the extent of its financial consequences, it is impossible to comply with Ukraine’s financial obligations stemming from the participation in EU Programmes. Accordingly, the Government of Ukraine would like to kindly request your support in considering a suspension of the obligations related to the financial contributions for Ukraine’s participation in the EU programmes in 2021 and following years of the current EU multiannual financial framework. A positive decision in relation to this matter will allow us to maintain Ukraine’s resilience and plug the financial gap that emerged due to escalating Russian aggression and critical shortages of financial resources. At a time of turmoil, the above efforts of Ukraine on its path towards the EU would provide greater certainty to a number of sectors along with reliable access to the European best practices, institutions, markets, financial services, investment opportunities, and funding. ELI: http://data.europa.eu/eli/agree_internation/2024/1490/oj 1/9EN OJ L, 31.5.2024 I am taking this opportunity to renew my gratitude to you and to the European Commission for being at the core of supporting Ukraine in its fight against the Russian Federation’s aggression. Please accept the assurances of my highest consideration and sincere wishes for every success in the conduct of your high office. I am very much looking forward to welcoming you in Kyiv on 2 and 3 February 2023 for a meeting with the Ukraine Government and the Ukraine-EU summit. Yours sincerely, Denys SHMYHAL 2/9 ELI: http://data.europa.eu/eli/agree_internation/2024/1490/ojEN OJ L, 31.5.2024 B. Letter from the European Union Dear Prime Minister, I acknowledge receipt of your letter on your request to suspend Ukraine’s obligation to pay a financial contribution in the context of its association to Union programmes. Following the unprovoked and unjustified Russian military aggression against Ukraine and its serious financial consequences for your country, the EU fully recognises the current impossibility for Ukraine to comply with its financial contribution obligations linked to its participation in those Union programmes. The European Union also acknowledges the important role that these Association Agreements to the Union programmes play in advancing the integration of Ukraine into the European Union. Therefore, the European Union hereby agrees to Ukraine’s request and proposes to suspend Ukraine’s obligations to pay the financial contribution for its participation in all Union programmes as of 1 January 2021 under the conditions stated hereunder. This suspension should apply to the provisions of the Agreements associating Ukraine to the Union programmes that are listed in the Annex to this letter. This suspension will remain in force unless lifted by one of the Parties. The necessity to maintain this suspension shall be assessed on a yearly basis by the European Commission primarily based on information provided by the Ukrainian government. If the situation on the ground has changed, the European Union may decide to lift this suspension after notifying Ukraine of its assessment. Before lifting the suspension, the European Union and Ukraine shall endeavour to agree on the amendment of the existing Association Agreements to set to zero the financial contribution of Ukraine for the years that were subject to the suspension. The termination of this Agreement in the Form of an Exchange of Letters shall take effect at the same time as the entry into force of the amendment of the different Association Agreements to set the financial contribution to zero. The European Union and Ukraine can agree that future Association Agreements concluded between them before the lifting of this suspension and associating Ukraine to other Union programmes can be subject to the suspension as agreed in this letter. These future Association Agreements to Union programmes shall specify the exact provisions to be suspended in accordance with this Agreement in the Form of an Exchange of Letters, thus supplementing the provisions already listed in the annex to this letter. A Party may still decide to request termination of one of the Association Agreements covered by this suspension in accordance with the applicable provision contained in that Association Agreement. Before the termination of the Association Agreement takes effect, the Parties can agree to amend the Association Agreement in order to set to zero the financial contribution of Ukraine for the years subject to the suspension. I would be grateful if you could confirm the agreement of your Government to the above. If the above is acceptable to your Government, this letter and your confirmation together constitute an Agreement between the European Union and Ukraine. This Agreement in the Form of an Exchange of Letters shall enter into force on the first day of the second month following the date of the last written notification on the fulfilment of the necessary procedures by the Parties. Yours faithfully, Ursula VON DER LEYEN President of the European Commission ELI: http://data.europa.eu/eli/agree_internation/2024/1490/oj 3/9EN OJ L, 31.5.2024 ANNEX Provisions of the Agreements associating Ukraine to certain Union programmes that are suspended Union programmes Provisions suspended Horizon Europe Framework Programme and Article 3 “Financial contribution” Research and Training Programme of the European Atomic Energy Community Article 4 “Rules for application of automatic correction mechanism to the operational contribution of Ukraine to Horizon Europe Pro­ Agreement between the European Union and gramme” European Atomic Energy Community of the one part and Ukraine of the other part, on the partici­ Article 9 (4) “Final provisions” pation of Ukraine in Horizon Europe - the Fra­ ANNEX I “Rules governing the financial contribution of Ukraine to the mework Programme for Research and Innovation Horizon Europe Programme (2021-2027) and to the Euratom Research and the Research and Training Programme of the and Training Programme (2021- 2025)” European Atomic Energy Community (2021-2025) complementing Horizon Europe – the Framework Programme for Research and Innovation Digital Europe Programme Article 3 “Financial contribution” Agreement between the European Union and Article 6 (3) “Final provisions” Ukraine on the participation of Ukraine in the Digital Europe programme (2021-2027) ANNEX I “Rules governing the financial contribution of Ukraine to the Digital Europe Programme (2021-2027)” FISCALIS Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5(3) “Final Provisions” Ukraine on the participation of Ukraine in 'Fisca­ lis', the Union programme for cooperation in the Annex I “Rules governing the financial contribution of Ukraine to the field of taxation Union Fiscalis programme (2022-2027)” CUSTOMS Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5 (3) “Final provisions” Ukraine on the participation of Ukraine in 'Cus­ toms', the Union programme for cooperation in Annex I “Rules governing the financial contribution of Ukraine to the the field of customs Union Customs programme (2022-2027)” EU4HEALTH Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5 (3) “Final provisions” Ukraine on the association of Ukraine to the EU4Health Programme Annex I “Rules governing the financial contribution of Ukraine to the EU4Health programme (2021-2027)” 4/9 ELI: http://data.europa.eu/eli/agree_internation/2024/1490/ojEN OJ L, 31.5.2024 Creative Europe Programme Article 3 “Financial contribution” Agreement between the European Union and Article 6 (4) “Final provisions” Ukraine on the participation of Ukraine in the Creative Europe Programme (2021 to 2027) Annex I “Rules governing the financial contribution of Ukraine to the Creative Europe programme (2021-2027)” LIFE Programme Article 3 “Financial contribution” Agreement between the European Union and Ukraine Article 5 (5) “Final provisions” on the participation of Ukraine in the Union pro­ gramme LIFE - the Programme for the Environment and Annex I “Rules governing the financial contribution of Ukraine to the Climate Action LIFE programme (2021-2027)” Single Market Programme Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union programme Annex I “Rules governing the financial contribution of Ukraine to the Single Market Programme (SMP) (2021-2027) Single Market programme (2021-2027)” Union Civil Protection Mechanism Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union Civil Pro­ Annex I “Rules governing the financial contribution of Ukraine to the tection Mechanism Union Civil Protection Mechanism” Connecting Europe Facility Programme Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union programme Annex I “Rules governing the financial contribution of Ukraine to the Connecting Europe Facility Connecting Europe Facility Programme (2021-2027)” On behalf of the European Union, ELI: http://data.europa.eu/eli/agree_internation/2024/1490/oj 5/9EN OJ L, 31.5.2024 C. Letter from the Ukrainian Government Your Excellency Ursula von der Leyen The President, European Commission I have the honour to acknowledge receipt of your letter of 5 April 2023, which reads as follows: “Dear Prime Minister, I acknowledge receipt of your letter on your request to suspend Ukraine`s obligation to pay a financial contribution in the context of its association to Union programmes. Following the unprovoked and unjustified Russian military aggression against Ukraine and its serious financial consequences for your country, the EU fully recognises the current impossibility for Ukraine to comply with its financial contribution obligations linked to its participation in those Union programmes. The European Union also acknowledges the important role that` these Association Agreements to the Union programmes play in advancing the integration of Ukraine into the European Union. Therefore, the European Union hereby agrees to Ukraine`s request and proposes to suspend Ukraine`s obligations to pay the financial contribution for its participation in all Union programmes as of 1 January 2021 under the conditions stated hereunder. This suspension should apply to the provisions of the Agreements associating Ukraine to the Union programmes that are listed in the Annex to this letter. This suspension will remain in force unless lifted by one of the Parties. The necessity to maintain this suspension shall be assessed on a yearly on basis by the European Commission primarily based on information provided by the Ukrainian government. If the situation on the ground has changed, the European Union may decide to lift this suspension after notifying Ukraine of its assessment. Before lifting the suspension, the European Union and Ukraine shall endeavour to agree on the amendment of the existing Association Agreement to set to zero the financial contribution of Ukraine for the years that were subject to the suspension. The termination of this Agreement in the Form of an Exchange of Letters shall take effect at the same time as the entry into force of the amendment of the different Association Agreement to set the financial contribution to zero. The European Union and Ukraine can agree that future Association Agreements concluded between them before the lifting of this suspension and associating Ukraine to other Union programmes can be subject to the suspension as agreed in this letter. These future Association Agreement to Union programmes shall specify the exact provisions to be suspended in accordance with this Agreement in the Form of an Exchange of Letters, thus supplementing the provisions already listed in the annex to this letter. A Party may still decide to request termination of one of the Association Agreements covered by this suspension in accordance with the applicable provision contained in that Association Agreement. Before the termination of the Association Agreement takes effect, the Parties can agree to amend the Association Agreement in order to set to zero the financial contribution of Ukraine for the years subject to the suspension. I would be grateful if you could confirm the agreement of your Government to the above. 6/9 ELI: http://data.europa.eu/eli/agree_internation/2024/1490/ojEN OJ L, 31.5.2024 If the above is acceptable to the Government, this letter and your confirmation together constitute an Agreement between the European Union and Ukraine. This Agreement in the Form of an Exchange of Letter shall enter into force on the first day of the second month following the date of the last written notification on the fulfilment of the necessary procedures by the Parties. Yours faithfully, Ursula VON DER LEYEN President of the European Commission” ELI: http://data.europa.eu/eli/agree_internation/2024/1490/oj 7/9EN OJ L, 31.5.2024 ANNEX Provisions of the Agreements associating Ukraine to certain Union programmes that are suspended Union programmes Provisions suspended Horizon Europe Framework Programme and Article 3 “Financial contribution” Research and Training Programme of the European Atomic Energy Community Article 4 “Rules for application of automatic correction mechanism to the operational contribution of Ukraine to Horizon Europe Pro­ Agreement between the European Union and gramme” European Atomic Energy Community of the one part and Ukraine of the other part, on the partici­ Article 9 (4) “Final provisions” pation of Ukraine in Horizon Europe - the Fra­ ANNEX I “Rules governing the financial contribution of Ukraine to the mework Programme for Research and Innovation Horizon Europe Programme (2021-2027) and to the Euratom Research and the Research and Training Programme of the and Training Programme (2021- 2025)” European Atomic Energy Community (2021-2025) complementing Horizon Europe – the Framework Programme for Research and Innovation Digital Europe Programme Article 3 “Financial contribution” Agreement between the European Union and Article 6 (3) “Final provisions” Ukraine on the participation of Ukraine in the Digital Europe programme (2021-2027) ANNEX I “Rules governing the financial contribution of Ukraine to the Digital Europe Programme (2021-2027)” FISCALIS Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5(3) “Final Provisions” Ukraine on the participation of Ukraine in 'Fisca­ lis', the Union programme for cooperation in the Annex I “Rules governing the financial contribution of Ukraine to the field of taxation Union Fiscalis programme (2022-2027)” CUSTOMS Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5 (3) “Final provisions” Ukraine on the participation of Ukraine in 'Cus­ toms', the Union programme for cooperation in Annex I “Rules governing the financial contribution of Ukraine to the the field of customs Union Customs programme (2022-2027)” EU4HEALTH Programme Article 3 “Financial contribution” Agreement between the European Union and Article 5 (3) “Final provisions” Ukraine on the association of Ukraine to the EU4Health Programme Annex I “Rules governing the financial contribution of Ukraine to the EU4Health programme (2021-2027)” 8/9 ELI: http://data.europa.eu/eli/agree_internation/2024/1490/ojEN OJ L, 31.5.2024 Creative Europe Programme Article 3 “Financial contribution” Agreement between the European Union and Article 6 (4) “Final provisions” Ukraine on the participation of Ukraine in the Creative Europe Programme (2021 to 2027) Annex I “Rules governing the financial contribution of Ukraine to the Creative Europe programme (2021-2027)” LIFE Programme Article 3 “Financial contribution” Agreement between the European Union and Ukraine Article 5 (5) “Final provisions” on the participation of Ukraine in the Union pro­ gramme LIFE - the Programme for the Environment and Annex I “Rules governing the financial contribution of Ukraine to the Climate Action LIFE programme (2021-2027)” Single Market Programme Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union programme Annex I “Rules governing the financial contribution of Ukraine to the Single Market Programme (SMP) (2021-2027) Single Market programme (2021-2027)” Union Civil Protection Mechanism Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union Civil Pro­ Annex I “Rules governing the financial contribution of Ukraine to the tection Mechanism Union Civil Protection Mechanism” Connecting Europe Facility Programme Article 3 “Financial contribution” Agreement between the European Union, of the Article 5 (3) “Final provisions” one part, and Ukraine, of the other part, on the participation of Ukraine in the Union programme Annex I “Rules governing the financial contribution of Ukraine to the Connecting Europe Facility Connecting Europe Facility Programme (2021-2027)” I have the honour to confirm that the above is acceptable to Ukraine and that your letter and this letter constitute an Agreement in the Form of an Exchange of Letter between the European Union and Ukraine, which will enter into force on the first day of the second month following the date of the last written notification on the fulfilment of the necessary procedures by the Parties. Please accept, Dear President, the assurance of my highest consideration. Denys SHMYHAL Prime Minister of Ukraine For Ukraine, ELI: http://data.europa.eu/eli/agree_internation/2024/1490/oj 9/9

Continue your research