EUROPEAN PARLIAMENT MEASURES: UKRAINE AMONG PRIORITIES

MEPs secured an increase in the EU budget for 2023 to more effectively address the consequences of the war in Ukraine and the pandemic recovery process.

In the agreement reached with EU countries on Monday November 14th, Parliament secured an additional 1.05 billion euros over the Commission’s initial draft budget to fund its priorities. MEPs increased funding for key EU programs and policies to deal with the aftermath of the war in Ukraine and the energy crisis, as well as to contribute to post-pandemic recovery and intensified efforts for Europe’s green and digital transition, in line with priorities set by the EP in its 2023 guidelines.

IMPACT OF THE WAR IN UKRAINE

MEPs further funded the following programs:

• Erasmus+ with 120 million euros to support Ukrainian students and teachers;
• Humanitarian aid, with an increase of 250 million euros;
• the Aylum, Migration and Integration Fund, with an increase of 36.5 million euros;
• the Border and Visa Management Facility, with 10 million euros;
• the “Neighborhood, Development Cooperation and International Cooperation Instrument” (NDICI – Global Europe) for the southern and eastern countries bordering the EU, with 280 million euros; and military mobility with 58.8 million euros.

LATEST TRADE INFORMATION: EXTENSION OF UKRAINE’S DUTY-FREE STATUS

The EU Council also renewed a regulation for another year, until June 2024, the suspension of all customs duties, quotas and trade defense measures on Ukrainian exports to the EU. By renewing these measures, the EU continues to demonstrate its political and economic support for Ukraine, which is still facing military aggression from Russia. These measures will help Ukraine maintain the stability of its trade relations with the EU and keep its economy functioning under very difficult circumstances. Together with broad military, financial and humanitarian support, this is critical to help Ukraine in its long-term recovery.

SIMEST: SUPPORT FOR ENTERPRISES AFFECTED BY THE CONFLICT IN UKRAINE. NEW TERMS AND CONDITIONS

It should be noted that Simest has rescheduled operations to support companies affected by the conflict in Ukraine with new terms and conditions.

Benificiaries of the financing are Italian companies exporting to Ukraine and/or the Russian Federation and/or Belarus, with the aim of maintaining and safeguarding the competitiveness in international markets of these companies affected by the crisis following the war in Ukraine.

Typology and duration of financing:

• Zero-interest repayment financing with a possible share of non-repayable co-financing, up to 40% of the total facilitation intervention, within the limits of € 2.000.000,00 of facilitation, with a duration of 6 years, including 2 years of pre-amortization;
• The requests are to be made from the Portal from 09:00 am on May 3rd 2023 until 6:00 pm on October 31th 2023, unless closed early due to exhaustion of available financial resources.

Beneficiary enterprises:

• Italian SMEs and Mid Caps registered in the Companies Register and in a state of activity, with a registered office or fiscal residence and an operating office in Italy, which have filed with the Companies Register at least two financial statements covering two complete fiscal years, with a ratio of average export turnover to Ukraine and/or Russian Federation and/or Belarus on total average export turnover of at least 10%, and which have suffered a drop in revenues from these areas as a result of the conflict of at least 20%.

Eligible expenses:

(by way of example, for the complete list please refer to the communication “FUND 394/81 – Circular No. 1/394/2023 – Support for Italian exporting companies in Ukraine and/or Russian Federation and/or Belarus“)

• expenses for the realization of productive investments, including in Italy;
• investment expenses for the creation of a new structure, even temporary, or for the strengthening of an existing structure in a foreign country alternative to Ukraine and/or Russian Federation and/or Belarus;
• expenses for consultancy and studies aimed at identifying new foreign markets to Ukraine and/or the Russian Federation and/or Belarus or strengthening the presence in alternative foreign markets;
• promotional budget and expenses for international events in Italy and abroad aimed at identifying new foreign markets to Ukraine and/or Russian Federation and/or Belarus or enhancing presence in alternative foreign markets.

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