EU ministers approve first payment of nearly 4.2B euro under the 50B euro Ukraine Facility
Ukraine is set to receive close to 4.2 billion euro in funds after European Union ministers approved on August 6 the first regular payment of grants and loans under the EU’s Ukraine Facility, to support Ukraine’s macro-financial stability and the functioning of its public administration, a statement by the Council of the EU said.
The statement said that EU ministers concluded that Ukraine had satisfied the necessary conditions and reforms envisaged in the Ukraine Plan for receiving the funds, which will be disbursed from the Ukraine Facility.
These reforms cover public financial management, governance of state-owned enterprises, business environment, energy and de-mining.
It also emphasised the importance of allocating the money as soon as possible, given the difficult fiscal situation in Ukraine, the statement said.
The Ukraine Plan sets out Ukraine’s intentions regarding the recovery, reconstruction and modernisation of the country and the reforms it plans to undertake as part of its EU accession process in the next four years.
In May 2024 the Council concluded that the Ukraine Plan fulfilled the preconditions for Ukraine to receive up to 50 billion euro in support under the Ukraine Facility.
The Ukraine Facility, which entered into force on March 1 2024, foresees up to 50 billion euro of stable financing, in grants and loans, to support Ukraine’s recovery, reconstruction, and modernisation for the period 2024 to 2027.
Of this, up to 32 billion euro is indicatively earmarked to support reforms and investments set out in the Ukraine Plan, whereby disbursements will be conditioned to the delivery of identified indicators.
Since its entry into force, the Ukraine Facility has already disbursed six billion euro by way of bridge financing and 1.89 billion euro in pre-financing, after fulfilment of agreed policy conditions.
(Photo: EC Audiovisual Service)
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