Date: 2025-07-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Council Decision (EU) 2025/1437 of 8 July 2025 establishing the position to be adopted on behalf of the European Union in the written procedure by the Participants to the Arrangement on Officially Supported Export Credits as regards the Common Line extending Ukraine’s eligibility for tied aid
Executive Summary:
Council Decision (EU) 2025/1437 establishes the European Union's position regarding a Common Line to extend Ukraine's eligibility for tied aid within the Arrangement on Officially Supported Export Credits. This decision supports the proposal and potential extension of the Common Line for up to four years. The decision was adopted on July 8, 2025, and came into force on the same date.
Key Points / Main Content:
* **Eligibility for Tied Aid:**
* Ukraine has been classified as an upper-middle-income country, which would normally make it ineligible for tied aid under Article 32 of the Arrangement.
* The decision supports an exception under Article 35(e) of the Arrangement to extend Ukraine's eligibility.
* **Common Line Proposal:**
* The EU supports a Common Line extending Ukraine's eligibility for tied aid, as detailed in the draft Common Line attached to the Decision.
* This position will be presented in a written procedure by the Participants to the Arrangement.
* **Extension of Common Line:**
* The EU supports the potential extension of the Common Line for up to a maximum of four years.
* This extension is in line with the EU's commitment to support Ukraine.
Impact Analysis:
European Union:
* Impact: The EU's position is defined, allowing it to support the extension of tied aid to Ukraine, aligning with its policy objectives. The decision will be binding on the Union and influence Union law.
* Action Required: The EU must present and advocate for its position in the written procedure by the Participants to the Arrangement, based on the draft Common Line.
Participants to the Arrangement on Officially Supported Export Credits:
* Impact: The Participants are required to consider the EU's proposal for a Common Line extending Ukraine's eligibility for tied aid in a written procedure.
* Action Required: The Participants must decide, via written procedure, on the EU's proposal for a Common Line to extend Ukraine's eligibility for tied aid.
Ukraine:
* Impact: Ukraine is enabled to continue receiving tied aid, despite its classification as an upper-middle-income country, supporting its economic development.
* Action Required: No direct action required from Ukraine; benefit is contingent on the Common Line being adopted and potentially extended.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe, and a key entity in the decision-making process described in the document.
Ukraine: A country in Eastern Europe that is the subject of the tied aid eligibility extension under consideration.
Arrangement on Officially Supported Export Credits: An agreement developed within the OECD that sets guidelines for officially supported export credits and tied aid.
Organisation for Economic Cooperation and Development OECD: An international organization that developed the Arrangement on Officially Supported Export Credits.
European Commission: The executive branch of the European Union, responsible for proposing the decision.
Regulation EU No 1233/2011: A European Union regulation that transposes the guidelines of the Arrangement on Officially Supported Export Credits into Union law.
World Bank: An international financial institution that provides data on countries' per capita gross national income GNI, which is used to determine eligibility for tied aid.
Council of the European Union: An institution of the European Union where ministers from each member state meet to adopt laws and coordinate policies.
Official Journal EN
of the European Union L series
2025/1437 17.7.2025
COUNCIL DECISION (EU) 2025/1437
of 8 July 2025
establishing the position to be adopted on behalf of the European Union in the written procedure by
the Participants to the Arrangement on Officially Supported Export Credits as regards the Common
Line extending Ukraine’s eligibility for tied aid
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph,
in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) The guidelines contained in the Arrangement on Officially Supported Export Credits (the ‘Arrangement’), developed
within the framework of the Organisation for Economic Cooperation and Development (OECD), have been
transposed and thus been made legally binding in the Union by virtue of Regulation (EU) No 1233/2011 of the
European Parliament and of the Council(1).
(2) Article 32 of the Arrangement lays down the country eligibility conditions for tied aid. In accordance with
paragraph (a) thereof, no tied aid may be provided to countries whose per capita gross national income (GNI),
according to the World Bank data, is above the upper limit for lower middle income countries. A country is
reclassified only after its World Bank category has remained unchanged for two consecutive years.
(3) In accordance with Article 35(e) of the Arrangement, a Participant to the Arrangement may, exceptionally and
subject to the adoption of a Common Line, provide tied aid to a country that would otherwise not be eligible
pursuant to Article 32 of the Arrangement.
(4) In July 2025, the World Bank classified Ukraine as an upper middle income country for the second time. This
implies that Ukraine is no longer eligible to receive tied aid. However, in line with the Union’s unwavering
commitment to provide support to Ukraine and its people for as long as it is needed, it is in the interests of the
Union to continue to be able to grant tied aid to Ukraine.
(5) The Participants to the Arrangement (the ‘Participants’) are to decide, in a written procedure, on the European
Union’s proposal for a Common Line in accordance with Chapter IV, Section 5 of the Arrangement to extend
Ukraine’s eligibility for tied aid.
(6) In accordance with Article 59(a) of the Arrangement, Common Lines are valid for a period of two years. Common
Lines which do not relate to a specific transaction may be extended in accordance with the procedures laid down in
Articles 54 to 58 of the Arrangement. Since the Union may need to continue providing exceptional support to
Ukraine for longer than two years, it is in the interests of the Union to be able to agree the extension of the proposed
Common Line for up to a maximum of four years.
(7) It is appropriate to establish the position to be taken on the Union’s behalf regarding the proposed Common Line
extending Ukraine’s eligibility for tied aid as well as the potential further extension thereof, as the proposed
Common Line, once agreed, will be binding on the Union and will be capable of decisively influencing the content of
Union law by virtue of Article 1 of Regulation (EU) No 1233/2011.
(8) The position of the Union in the written procedure by the Participants should therefore be to support the proposal
based on the draft Common Line attached to this Decision, and to support a potential extension thereof,
HAS ADOPTED THIS DECISION:
(1) Regulation (EU) No 1233/2011 of the European Parliament and of the Council of 16 November 2011 on the application of certain
guidelines in the field of officially supported export credits and repealing Council Decisions 2001/76/EC and 2001/77/EC (OJ L 326,
8.12.2011, p. 45, ELI: http://data.europa.eu/eli/reg/2011/1233/oj).
ELI: http://data.europa.eu/eli/dec/2025/1437/oj 1/2EN
OJ L, 17.7.2025
Article 1
1. The position to be adopted on the Union’s behalf in the written procedure by the Participants to the Arrangement on
Officially Supported Export Credits (the ‘Participants’) as regards the Common Line extending Ukraine’s eligibility for tied
aid shall be based on the draft Common Line attached to this Decision.
2. The position to be adopted on the Union’s behalf in the written procedure by the Participants as regards the extension
of the Common Line referred to in paragraph 1 shall be to support the extension for up to a maximum of four years.
Article 2
This Decision shall enter into force on the date of its adoption.
Done at Brussels, 8 July 2025.
For the Council
The President
S. LOSE
2/2 ELI: http://data.europa.eu/eli/dec/2025/1437/oj