EU ministers approve second payment of more than 4.2B euro under Ukraine Facility
Ukraine will soon receive more than 4.2 billion euro in funds after the Council of the European Union greenlighted the second 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, the Council of the EU said on December 9.
In a decision adopted today, the 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.
The EU ministers 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, and in August the first EU instalment was disbursed.
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 on the delivery of identified indicators.
Since its entry into force, the Ukraine Facility has already disbursed six billion euro by way of bridge financing, 1.89 billion euro in pre-financing, and a first instalment of nearly 4.2 billion euro, of which 1.5 billion euro in the form of non-repayable financial support and more than 26 billion euro in the form of loans.
Following the European Commission’s assessment of the payment request submitted by Ukraine on October 10 2024, the Council of the EU concluded that Ukraine has satisfactorily fulfilled reforms envisaged in the Ukraine Plan.
These reforms cover the fight against corruption and money laundering, the Criminal Code and Criminal Procedure Code, business environment, energy and the green transition and environmental protection. The December 9 implementing decision authorises the second of these payments to take place.
(Photo: EC Audiovisual Service)
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