EU-FINSTAR – Technical Assistance in Financial Sector’s Priority Areas, Ukraine

Source of Funding: Delegation of the European Union to Ukraine

Period: 2015 – 2018

The aim of the Project of Technical Assistance of the EU is to support the strengthening of the financial services sector in Ukraine and its adaptation to the European and international standards. The project is a continuation of technical cooperation between Ukraine and the EU in the field of financial services and aims to ensure implementation of the Association Agreement between Ukraine and the EU.

The EU project experts work with the beneficiaries to:

  • Implement internationally-recognized financial reporting data taxonomies enabling comparisons (i.e. domestic and cross-border) and increasing financial transparency into financial firms and other commercial enterprises which are using public markets to finance their operations;
  • Enhance the National Bank of Ukraine’s framework for statistics (i.e. financial and monetary) to approximate to guidance elaborated and implemented by the European Central Bank;
  • Implement Consolidated Supervision for financial firms based on best European Union practices and standards outlined by the relevant European authorities (i.e. the European Banking Authority, the European Securities and Market Authority, the European Insurance and Occupational Pensions Authority, as well as the European Central Bank);
  • Develop the National Bank of Ukraine’s capacity as a financial stability supervisor to assist in developing instruments and implementing strategies for interventions to manage and mitigate systemic risk(s).
  • Support the National Bank of Ukraine in implementing and controlling the environment required to enable the free flow of capital without adverse impacts to macroeconomic or financial stability;
  • Support the Ministry of Finance in strengthening the organisational set-up and the regulatory framework for the audit profession approximating to best European Union practices and to international standards (Directive 2014/56/EU, Regulation 537/2014, and IAASB standards);
  • Support the Ministry of Finance’s updates of Ukrainian accounting standards for annual and consolidated accounts of companies to implement Ukraine’s new accounting legislation which approximates to the European Union’s 2013 Accounting Directive (2013/34/EU);
  • Support the implementation of an investor compensation scheme for Ukraine’s securities market that approximates to 97/9/EC; and
  • Assist the National Bank of Ukraine in enhancing its regulatory framework by Basel II/Pillar 2 implementation (Directive 2013/36/EU-CRD IV, Regulation [EU] 575/2013-CRR).

Collectively, the areas of assistance being provided by the EU support the implementation of the Association Agreement and contribute to longer-term goals for achieving an integrated, open, inclusive, competitive and an efficient unified financial market in Ukraine.