The European Commission (EC) is proposing a financial instrument of up to 50 billion euro for the period 2024 to 2027 for both grants and loans to support Ukraine’s recovery, the EC said.
“In light of the devastating consequences of Russia’s war of aggression for Ukraine’s people, economy, and infrastructure, and given the enormous scale and complexity of the recovery and reconstruction challenge, the European Commission is proposing to establish a dedicated financing instrument that will provide coherent, predictable as well as flexible support for the period 2024-2027 to Ukraine, adapted to the unprecedented challenges of supporting a country at war,” the EC said.
The facility underscores the EU’s steadfast commitment to supporting Ukraine in the face of Russia’s ongoing war of aggression and on its path towards EU membership, the statement said.
The EC said that the new Ukraine Facility will support Ukraine’s efforts to sustain macro-financial stability, promote recovery as well as modernise the country whilst implementing key reforms on its EU accession track.
“It will support the transition towards a green, digital and inclusive economy that is progressively aligned with EU rules and standards.”
The EC said that the facility is organised around three pillars.
The first is financial support to the state in the form of grants and loans, that would ensure stable and predictable funding, supporting the sustainability of Ukraine’s finances, while providing a solid framework for the protection of the EU budget.
To access this support, the government of Ukraine will need to prepare a plan for the recovery, reconstruction and modernisation of the country and detail the reforms and investments it intends to undertake as part of its EU accession process.
The second pillar is a specific Ukraine Investment Framework designed to attract and mobilise public and private investments for Ukraine’s recovery and reconstruction, in support of the plan’s implementation.
The third pillar is technical assistance and other supporting measures, including mobilisation of expertise on reforms, support to municipalities, civil society, and other forms of bilateral assistance normally available for pre-accession countries under the Instrument for Pre-Accession (IPA), also supporting the objectives of the Ukraine Plan.
Under this pillar, it will also be possible to support other initiatives aimed at responding to the Russian aggression against Ukraine, including to enforce international law in relation with crimes committed by Russia on the territory of Ukraine.
Interest rate subsidies for the cost of loans will also be covered under this third pillar, the EC said.
(Photo: EC Audiovisual Service)
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