What measures has the EU taken in response to the Russian invasion of Ukraine?
On 24 February 2022 Russia launched a military invasion of Ukraine. This triggered measures by the EU in various areas, including measures relating to refugees from Ukraine, sanctions against Russia, steps to safeguard Europe’s energy supply and mitigate the impact of energy price rises, and financial measures to support EU member states and Ukraine. The invasion also has implications for cooperation between EU supreme courts of audit and the Accounts Chamber of the Russian Federation.
More about:
Russia invaded Ukraine on 24 February 2022 and the conflict is still raging. The war in Ukraine is having immense humanitarian consequences for the country and has triggered an unprecedented flow of refugees to various EU member states.
On 4 March 2022, the Council decided to activate the Temporary Protection Directive for the first time since its introduction on 7 August 2001. Ukrainian refugees displaced by Russia’s military invasion can now seek temporary protection in the EU.
Temporary protection means Ukrainian nationals can stay in the EU member states without having to apply for asylum. They have a right to housing and education and may work in the EU. On 28 September 2023, the Temporary Protection Directive was prolonged for 1 year to 3 March 2025.
As from 4 March 2023, this directive has not applied to refugees with a temporary residence permit in Ukraine (e.g. for work or study) and who are therefore not Ukrainian nationals.
According to the European Commission about 14 million Ukrainians had fled to the EU by February 2023. According to EUROSTAT about 4.24 million refugees had registered for temporary protection by 31 October 2023. By 8 December 2023, 105,010 Ukrainian refugees had registered in the Netherlands.
More information:
- Council Directive 2001/55/EC of 20 July 2001 on minimum standards for giving temporary protection in the event of a mass influx of displaced persons and on measures promoting a balance of efforts between Member States in receiving such persons and bearing the consequences thereof - Temporary Protection Directive (2001)
- Council implementation decision (EU) 2022/382 - Council of the EU’s decision to implement temporary protection for Ukraine misplaced persons (04-03-2022)
- Richtlijn Tijdelijke Bescherming voor vluchtelingen uit Oekraïne verlengd tot en met 4 maart 2025 - Central Government regarding extension temporary protection directive (28-09-2023) (Dutch only)
- More than 4.2 million people under temporary protection, EUROSTAT on misplaced persons from Ukraine (08-12-2023)
- Migration management: Welcoming refugees from Ukraine, European Commission
- Cijfers opvang vluchtelingen uit Oekraïne in Nederland - Number of Ukraine refugees in the Netherlands (Dutch only)
The EU has imposed 12 packages of sanctions on Russia since the start of the war. They include economic sanctions, such as denying access to SWIFT for a large number of Russian banks and bans on the import and export of certain goods. The measures are designed to: 1) weaken the Kremlin’s ability to finance the war, 2) impose clear economic and political costs on Russia’s political elite responsible for the invasion, and 3) weaken Russia’s economic base. See also this page on the European Commission’s website for further information on the sanctions.
On 28 November 2022, violation of the sanctions was added to the EU list of crimes. On 2 December 2022, the Commission made a proposal for a directive on the definition of criminal offences and penalties for the violation of restrictive measures.
More information:
- Sanctions adopted following Russia’s military aggression against Ukraine
- EU sanctions against Russia following the invasion of Ukraine, European Commission
- Sanctions: Council adds the violation of restrictive measures to the list of EU crimes - Press release European Council (28-11-2022)
- Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the definition of criminal offences and penalties for the violation of Union restrictive measures (2-12-2022)
The member states rely on Russia for some of their energy requirements, especially gas. The war in Ukraine has affected both energy security and energy prices. On 18 May 2022, the European Commission presented its REPowerEU Plan in response to the war's consequences for energy security, energy prices and the EU’s reliance on fossil fuels from Russia.
The REPowerEU plan is intended to mitigate the consequences that the war in Ukraine has for energy security in the EU, energy prices and the reliance on Russian fossil fuels. The European Commission intends for this plan to reduce Europe’s reliance on Russian fossil fuels within the near future and to accelerate the energy transition. The EU energy platform set up as part of this plan on 7 April 2022 will facilitate member states working together, on a voluntary basis, to secure affordable supplies of energy from reliable partners.
More information:
- Text REPowerEU-plan
- Press release European Commission regarding REPowerEU-plan (18-05-2022)
- ‘REPowerEU at a glance’: information by the European Commission
- ‘EU Energy platform’: information by the European Commission
The various regulations, directives and interventions adopted or made by the European Commission in conjunction with the Council of the EU since June 2022 to address issues relating to energy security and energy prices in the EU are listed below:
-
Regulation 2022/1032 with regard to gas storage and the security of gas supply was adopted on 27 June 2022.
-
Regulation 2022/1369 was adopted on 5 August 2022 to reduce gas demand by 15%.
-
Regulation 2022/1854 was adopted on 6 October 2022 and enables an emergency intervention to address high energy prices. The 15% target was extended by a year on 30 March 2023.
-
On 19 December 2022, emergency regulation, 2022/2576, was adopted to fight high gas prices and secure energy supply for the winter. It enabled the establishment of the Aggregate EU mechanism for joint gas purchasing at EU level (one of the pillars of the EU energy platform).
-
On 22 December 2022, temporary Regulation 2022/2577 to accelerate the transition to renewable energy was adopted. It is in force for 18 months as from 30 December 2022.
-
On the same date, the Council adopted Regulation 2022/2578, under which a market correction mechanism to protect citizens and the economy against excessively high prices was introduced.
-
Agreement was reached on 4 February 2023 on 2 price caps for maritime transport of Russian petroleum products.
Both the European Commission and the Council provide a summary of the EU action taken to address the energy crisis.
More information:
- Regulation (EU) 2022/1032 of the European Parliament and of the Council of 29 June 2022 amending Regulations (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage (Text with EEA relevance)Text with EEA relevance
- Council Regulation (EU) 2022/1369 of 5 August 2022 on coordinated demand-reduction measures for gas
- Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices
- Energy prices: Commission proposes emergency market intervention to reduce bills for Europeans - Press release European Commission (14-09-2022)
- Member states agree to extend voluntary 15% gas demand reduction target - Press release European Council (28-03-2023)
- Joint gas purchasing: The AggregateEU mechanism to increase energy security for Europe - Regulation (EU) 2022/2576 of 19 December 2022 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders
- EU agrees on level of price caps for Russian petroleum products - Press release European Council (04-02-2023)
- EU action to address the energy crisis, European Commission
- Energy prices and security of supply, European Council
Russia’s invasion of Ukraine has resulted in the EU imposing economic and other sanctions, in large numbers of refugees seeking refuge in EU member states, in energy security problems and in high energy prices. All of these have financial consequences for member states. The EU has responded by taking various financial measures:
- Changes in various EU fund flows
- Relaxation of the Stability and Growth Pact rules
- Temporary crisis framework for state aid
Changes in various EU fund flows
Cohesion’s Action for Refugees in Europe (CARE)
Regulation 2022/562 was adopted on 6 April 2022. It allows the member states to grant emergency support within the current cohesion policy to Ukrainian refugees (Cohesion’s Action for Refugees in Europe; CARE). CARE provides greater flexibility in the member states’ cohesion policy as they may redirect unspent EU resources in the 2014-2020 cohesion funds (ERDF, ESF and EMFF) to meet migration challenges. Resources in the ERDF and ESF may also be applied for all manner of measures regardless of whether they would normally be funded from the ERDF or ESF.
In 2022, the €10 billion in recovery assistance available for cohesion and the territories of Europe (REACT-EU) could also be applied to address migration challenges. REACT-EU is a top-up to the member states’ cohesion policy for 2014-2020 and has the overarching goal of recovery from the COVID-19 crisis. Expenditure on specific actions for refuges has been eligible for assistance since 24 February 2022. Regulation (EU) 2022/613 was adopted on 12 April 2022. It increases the pre-financing member states can receive from REACT-EU resources by €3.4 billion in total.
Regulation 2022/2039 was adopted on 19 October 2022 to increase flexibility to address the consequences of the military aggression of the Russian Federation (Flexible Assistance for Territories; FAST-CARE). FAST-CARE offers member states greater flexibility in cohesion policy, in part by increasing pre-financing by €3.5 billion.
More information:
- CARE – Cohesion’s Action for Refugees in Europe - European Commission information regarding CARE
- REACT-EU - European Commission information regarding REACT-EU
- Regulation (EU) 2022/613 of the European Parliament and of the Council of 12 April 2022 amending Regulations (EU) No 1303/2013 and (EU) No 223/2014 as regards increased pre-financing from REACT-EU resources and the establishment of a unit cost
- Ukraine: €3.4 billion REACT-EU pre-financing to Member States welcoming refugees fleeing Ukraine - Press release European Commission (23-03-2022)
- Regulation (EU) 2022/2039 of the European Parliament and of the Council of 19 October 2022 amending Regulations (EU) No 1303/2013 and (EU) 2021/1060 as regards additional flexibility to address the consequences of the military aggression of the Russian Federation FAST (Flexible Assistance for Territories) – CARE - (19-10-2022)
- Ukraine: Cohesion Policy steps up support to address the consequences of Russia's aggression in Ukraine with the ‘Flexible Assistance to Territories' - Press release European Commission (29-06-2022)
Setting up a new support mechanism for Ukraine
On 20 June 2023 the European Commission published a proposal to establish a new instrument, the Ukraine Facility, for 2024-2027. This aims to ‘cater both for short-term recovery needs and medium-term reconstruction and modernisation of Ukraine.’ The facility consists of up to €50 billion (current prices), of which €33 billion will be in the form of loans and €17 billion in non-repayable support such as grants and guarantees.
The proposed facility consists of three pillars: (I) financial support for a reform and investment agenda (the Ukraine Plan), (II) an investment framework to mobilise public and private financing for Ukraine; and (III) technical assistance and other supporting measures for implementing reforms in Ukraine in the pre-accession phase and for capacity-building. Loans under pillar I will be granted for up to 35 years.
While the European Parliament voted in favour of the proposal on 17 October 2023, the member states were unable to reach agreement on the proposal at the European Council meeting on 14 December 2023.
More information:
- Proposal for a Regulation on establishing the Ukraine Facility (20-06-2023)
- Fiche 2 - Voorstel verordening instelling Oekraïne-faciliteit - Appreciation Dutch cabinet regarding Ukraine facility (bnc-fice 28-8-2023) (Dutch only)
Relaxation of the Stability and Growth Pact (SGP)
Relaxation of the SGP began during the COVID-19 crisis and was extended by 1 year to 2024 on account of the war in Ukraine. The member states’ budget deficits and public debt may now exceed the SGP’s reference values (3% and 60% respectively) without the European Commission imposing sanctions. This escape clause was deactivated at the end of 2023. The budget rules that will apply as from 2024 are currently being revised.
More information:
- European Semester Spring Package: Sustaining a green and sustainable recovery in the face of increased uncertainty - Press release European Commission concerning relaxation of the SGP until 2024 (23-05-2022)
- Fiscal policy guidance for 2024: Promoting debt sustainability and sustainable and inclusive growth - Press release European Commission regarding deactivating the escape clause concerning the reference values of SGP (08-03-2023)
- How does the EU ensure that its member states keep their budgets in check? - Netherlands Court of Audit regarding Stability and Growth Pact
Temporary crisis framework for state aid measures
To prevent unfair competition, state aid may not generally be awarded to enterprises in the EU. In exceptional cases, the European Commission can approve state aid subject to stringent conditions.
To mitigate the economic impact of the war and assist badly affected businesses and sectors, the Commission presented a Temporary Crisis and Transition Framework for State Aid measures on 23 March 2022 to support the economy following Russia’s aggression against Ukraine. The temporary framework has since been amended 3 times. Member states have until 30 June 2024 to grant aid to businesses affected by the sanctions imposed on Russia and compensate them for additional costs due to high gas prices. Since 31 December 2023, however, member states have no longer been permitted to provide liquidity support in the form, for example, of state guarantees. However, the framework allows aid to be granted until 31 December 2025 to promote the transition towards a net zero economy.
EU member states have to apply to the European Commission for permission to grant state aid in the context of the war in Ukraine.
The Commission publishes regular overviews of measures that have been approved under the temporary framework.
As far as we are aware, the Netherlands has applied 4 times for state aid decisions as at 15 December 2023, involving a total amount of €3.16 billion. These applications include a measure to support renewable heat projects, a measure to support the greenhouse horticulture sector, a measure to support small energy consumers and an aid scheme for energy-intensive companies. The Commission also has given its approval to a Dutch scheme costing up to €406.4 million to support the filling of the Bergermeer gas storage facility following Russia’s invasion of Ukraine.
More information:
- State aid, European Commission
- Temporary Crisis and Transition Framework - EU rules regarding State aid to support economy following the aggression against Ukraine by Russia
- Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia (17-03-2022)
- Commission adjusts phase-out of certain crisis tools of the State aid Temporary Crisis and Transition Framework - Press-release European Commission (20-11-2023)
- State aid: Commission adopts Temporary Crisis Framework to support the economy in context of Russia's invasion of Ukraine - Statement European Commission (23-03-2022)
- State aid: Commission adopts Temporary Crisis and Transition Framework to further support transition towards net-zero economy - Press-release European Commission (09-03-2023)
- Temporary Crisis Transition Framework (TCTF) (PDF) - European Commission list of member states measures approved under temporary crisis and transition framework
- La Commission se félicite de l'accord final sur le portefeuille d'identité numérique de l'UE - Press-release European Commission regarding the approval of Dutch scheme to support companies having implemented renewable heat projects (9-11-2023)
- State aid: Commission approves €70 million Dutch scheme to support the greenhouse horticulture sector in the context of Russia's war against Ukraine - Press-release European Commission (05-04-2023)
- State aid: Commission approves €1 billion Dutch scheme to support small energy users in the context of Russia's war against Ukraine - Press-release European Commission (16-12-2022)
- State aid: Commission approves €1.4 billion Dutch scheme to support energy-intensive companies in the context of Russia's war against Ukraine - Press- release European Commission (13-04-2023)
- State aid: Commission approves Dutch scheme to support the filling of the gas storage facility Bergermeer in context of Russia's invasion of Ukraine - Press-release European Commission (12-07-2022)
As well as measures to help EU member states mitigate the consequences of Russia’s invasion of Ukraine, the EU has introduced various measures to support Ukraine itself:
- Humanitarian and military support
- Financial support
- Import and export measures
Humanitarian and military support
In addition to receiving refugees and imposing sanctions on Russia, the EU and its member states have provided humanitarian support to Ukraine, including material support through the European Civil Protection Mechanism and military support through the European Peace Facility. By the end of June 2023 the EU had provided €733 million for this purpose. As at 14 December 2023 total EU support to the Ukraine military and to protect the civilian population amounted to €5.6 billion.
On 17 October 2022 the Council launched a military assistance mission for Ukraine (European Union Assistance Mission Ukraine; EUMAM). Its aim is to enhance the military capability of the Ukrainian armed forces to defend Ukraine’s territorial integrity and sovereignty within its internationally recognised borders, as well as to protect the civilian population. The mission was launched on 15 November 2022.
On 28 November 2023 the Council announced an increase in support for training the Ukrainian military, bringing the total support provided for this purpose to €255 million.
More information:
- European Civil Protection and Humanitarian Aid Operations - European Commission
- European Peace Facility, European Council
- EU solidarity with Ukraine, European Council
- Ukraine: EU launches Military Assistance Mission, Press-release European Council (15-11-2022)
- European Union Assistance Mission Ukraine (PDF) (November 2022)
- European Peace Facility: Council greenlights further funding for training of the Ukrainian Armed Forces under EUMAM Ukraine, Press release European Council (28-11-2023)
Financial support
On 1 February 2022 the European Commission announced a proposal for a decision to provide an additional €1.2 billion of emergency macro-financial assistance to Ukraine. This proposal was adopted by the European Parliament and the Council of the EU on 24 February 2022. The money was paid out in two tranches on 11 March 2022 and 18 March 2022, respectively.
On 18 May 2022, the European Commission issued a communication announcing that it proposed granting new exceptional macro-financial assistance to Ukraine in the form of loans of up to €9 billion. The proposal was ratified by the European Council. The European Commission then disbursed €1 billion in extraordinary macro-financial assistance to Ukraine in early August. This was followed on 18 October 2022, 23 November 2022 and 14 December 2022 by a further package of €5 billion in total. As is customary with extraordinary financial assistance, the Commission borrows funds from financial institutions and on the capital market on behalf of the EU. The Netherlands has guaranteed approximately €0.2 billion. The total macro-financial support provided to Ukraine in 2022 amounted to €7.2 billion.
On 9 November 2022, the Commission announced a proposal to provide a stable and predictable support package for Ukraine of up to €18 billion for 2023. This proposal was adopted by the European Parliament and the Council on 14 December 2022. A first tranche of €3 billion in loans was paid out on 17 January 2023, followed by further payments of €1.5 billion every month in 2023. Under the existing allocation ratios in the EU, the Netherlands guarantees approximately €1 billion. It also pays interest of about €40 million per annum. More information on macro-financial assistance to Ukraine is available on this page.
More information:
- Decision of European Parliament and of the Council to provide macro-financial assistance for Ukraine (PDF) (24-02-2022)
- Macro-financial assistance - Information regarding payment macro-financial assistance for Ukraine
- Statement by European Commission regarding Ukraine relief an reconstruction (18-05-2022)
- EU solidarity with Ukraine, European Council regarding macro financial assistance disbursed to Ukraine (December 2023)
- Ukraine: Commission presents plans for the Union's immediate response to address Ukraine's financing gap and the longer-term reconstruction - Press-release European Commission (18-05-2022)
- European Commission disburses first tranche of the new €1 billion macro-financial assistance for Ukraine - Press-release European Commission (1-8-2022)
- Commission disburses further €2 billion in exceptional macro-financial assistance to Ukraine - Press release European Commission regarding the second tranche of macro-financial assistance for Ukraine (18-10-2022)
- Commission disburses further €2.5 billion in exceptional macro-financial assistance to Ukraine - Press release European Commission regarding the third tranche of macro-financial assistance for Ukraine (23-11-2022)
- Commission proposes stable and predictable support package for Ukraine for 2023 of up to €18 billion - Press-release European Commission (09-11-2022)
- Commission pays a further €1.5 billion in macro-financial assistance to Ukraine - Press-release European Commission regarding payments for macro-financial assistance for Ukraine (21-03-2023)
- Kamerbrief over kabinetsappreciatie commissievoorstel macro-financiële bijstand 2023 aan Oekraïne - Appreciation Dutch cabinet regarding macro-financial assistance for Ukraine (29-11-2022) (Dutch only)
- Macro-Financial Assistance - European Commission concerning macro-financial assistance for Ukraine
Import and export measures
On 12 May 2022, the Commission presented an action plan to establish solidarity lanes to facilitate Ukraine’s agricultural export and bilateral trade (chiefly grain). On 11 November 2022, it was announced that the Commission would urgently provide €250 million to continue facilitating the solidarity lanes. For the medium term, it will mobilise the Connecting Europe Facility and provide a further €50 million, as a result of which the total contribution comes to €200 million. In addition, the European Investment Bank and the European Bank for Reconstruction and Development will each invest up to €300 million in the solidarity lanes.
As from 4 June 2022 all import duties on products originating in Ukraine were removed for a year, as were EU anti-dumping measures and exemptions for steel imports from Ukraine. These measures are designed to stimulate Ukrainian exports to the EU and alleviate the circumstances of Ukraine manufacturers and exporters. On 23 February 2023, the Commission proposed to extend these trade benefits for Ukraine for a year.
On 25 May 2023 the Council of the EU extended the trade benefits to June 2024.
The Commission adopted a decision on 1 July 2022 under which the member states can temporarily waive customs duties and VAT on third-countries’ imports of a wide range of life-saving equipment, such as food, blankets and tents, destined for Ukrainians affected by the war. The measure applied retroactively from 24 February 2022 and was intended to remain in place until 31 December 2022. On 17 April, the Commission decided at the request of 10 member states, including the Netherlands, to extend the exemption for these member states by a year until 31 December 2023.
More information:
- An action plan for EU-Ukraine Solidarity Lanes to facilitate Ukraine's agricultural export and bilateral trade with the EU (PDF) (12-05-2022)
- Commission to establish Solidarity Lanes to help Ukraine export agricultural goods - Press-release European Commission (12-05-2022)
- Joint Declaration - 1 billion euro mobilised for Solidarity Lanes to increase global food security and provide a lifeline for Ukraine's economy - Declaration European Commission regarding dedication of € 250 million of grants to boost the solidarity lanes (11-11-2022)
- Connecting Europe Facility - European Commission
- Factsheet EU-Ukraine Solidarity Lanes – Lifeline for Ukrainian economy, key for global food security (21-11-2022)
- Regulation(EU) 2022/870 of the European Parliament and of the Council of 30 May 2022 on temporary trade-liberalisation measures supplementing trade concessions applicable to Ukrainian products under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part
- Commission proposes to renew trade benefits for Ukraine for a year - Press-release European Commission (23-02-2023)
- Ukraine: Council adopts renewal of temporary trade liberalisation and other trade concessions - Press-release European Council (25 May 2024)
- Ukraine: Commission waives customs duties and VAT on the import of life-saving goods for Ukrainians - Press-release European Commission (01-07-2022)
- Decision of the European Commission of 17 April 2023 on relief from import duties and VAT exemption on importation granted for goods to be distributed or made available free of charge to persons fleeing the military aggression in Ukraine and to persons in need in Ukraine (PDF)
- EU assistance to Ukraine - European Commission
- Timeline: how the EU supported Ukraine in 2022 - European Parliament
- Timeline - EU response to Russia's invasion of Ukraine, European Council
At the beginning of March 2022, the Netherlands Court of Audit decided to suspend its participation in activities chaired or organised by the Accounts Chamber of the Russian Federation. EUROSAI has also suspended its work with the audit institutions of Russia and Belarus. The Russian audit institution no longer chairs INTOSAI.
Overview of audits
The European Court of Auditors was asked by the Council of the EU and the European Parliament for an opinion on the Ukraine Facility. The opinion was published on 20 June 2023.
More information:
- Opinion 03/2023 concerning the proposal for a Regulation of the European Parliament and of the Council on establishing the Ukraine Facility - Opinion European Court of Auditors concerning the Ukraine Facility (23-06-2023)