Financing of Critical Projects

How Recovered Assets Could Finance Critical Projects

EaP region’s average annual losses due to IFFs linked to criminal activity (estimated total EUR 29.9 billion)

Many other region-wide projects directed to high-priority development needs

90% EUR 26.9 billion

10% EUR 2.99 billion If only 10% of IFFs in the region were successfully recovered, this would fund:

1.7 billion

1.29 billion

COVID-19 Emergency Package EU-ACT project EU4Culture programme

TOPCOP programme

The Eastern Partnership benefits from numerous projects both from the European Union and other international organisations such as the World Bank, the OSCE and the OECD. Through the EU4Business, Small and Medium-Sized Enterprises (SMEs) in EaP countries were supported with a budget of approximately EUR 790 million in 2019. Some 116 projects helped SMEs by improving access to finance, promoting better regulations, and taking advantage of trade opportunities. The EU4Business initiative in the EaP region has helped generate EUR 1.3 billion in income and almost 120 000 new jobs, while also increasing exports by 5.9%.172

Amid the COVID-19 pandemic, in June 2020 the European Commission provided EaP countries with an emergency package for immediate needs and for medium-term social and economic regional recovery (up to EUR 900 million).173

Among other EU-funded projects are:174

The EU4Culture programme, with a budget of EUR 7.8 million, aimed at bolstering social development in the region;

The EU-ACT project, with a budget of EUR 14.5 million, aimed at building capacities to increase regional and crossborder cooperation in the fight against organised crime and drug trafficking; and

The TOPCOP programme, with a budget of EUR 6 million, aimed at

strengthening law enforcement cooperation against organised crime.

When considered together, the budgets of these projects still amount to less than the 10% of what the EaP region loses every year due to illicit financial flows. Recovering 10% of illicit financial flows in the EaP region (EUR 2.99 billion)175 would cover the budgets of these aforementioned initiatives (EUR 1.7 billion) and could allow international support to be directed to other, high-priority needs.