13 steps Ukraine has taken to get €3.5 billion from the EU
17 March 13:14
The EU Council has approved the next tranche of financial assistance to Ukraine in the amount of approximately €3.5 billion, Komersant ukrainskyi reports, citing the EU Council.
The funds will come in the form of non-repayable grants and loans under the Ukraine Facility program, which aims to support Ukraine’s macroeconomic stability and recovery.
According to the EU Council, this third tranche will bring the total amount of assistance provided to Ukraine under the Ukraine Facility since its launch a year ago to almost €20 billion.
The Council concluded that Ukraine has fully met the necessary conditions set out in the Ukraine Plan to receive the third tranche of funding.
13 key steps successfully implemented by Ukraine
Ukraine demonstrated the implementation of 13 different reforms and initiatives, including
- Adoption of legislative changes to increase the use of renewable energy sources.
- Increasing the autonomy of the energy regulator.
- Simplification of border crossing procedures in line with EU standards.
- Approval of the strategy for the development of agriculture and rural areas, including a program for the demining of agricultural land.
- Continuation of work on accounting for strategic and critical raw materials, etc.
It is worth noting that the “Ukrainian Plan” in this context outlines Ukraine’s intentions to restore, reconstruct and modernize the country, and contains a schedule for implementing reforms planned as part of the EU accession process for the next four years.
Читайте нас у Telegram: головні новини коротко
Ukraine Facility
In February, the EU approved the Ukraine Facility, a €50 billion financing mechanism for Ukraine for the period 2024-2027. The program consists of €17 billion in grants and €33 billion in loans. The mechanism provides not only for financing budgetary areas in Ukraine during the war, but also for programs aimed at implementing the reforms on which Ukraine’s accession to the EU depends.
The resolution emphasizes that the EU’s support should be directed in three areas:
- Financial support for Ukraine to implement reforms and investments, as well as to maintain the country’s macro-financial stability, as envisaged in the Ukraine Plan to be developed by the Ukrainian government.
- Ukraine’s investment framework to mobilize investment and expand access to finance.
- Assistance on the path to European integration to mobilize technical expertise and capacity building.
What does the plan for the Ukraine Facility envisage?
The Ukraine Facility Plan envisages the implementation of structural reforms in the public sector, a number of economic reforms aimed at improving the business climate and entrepreneurship, and steps to develop priority sectors that can ensure rapid economic growth. Implementation of the Plan will contribute to Ukraine’s European integration and further sustainable economic development.
The Ukraine Facility Plan includes more than 150 indicators in 69 reform areas to be implemented by 2027. The plan was developed in full synchronization with Ukraine’s key international partners.
The Ukraine Facility Plan also includes 16 investment indicators that are part of the overall list of changes. In order to fulfill them, it is necessary to continue and strengthen programs for infrastructure development, demining, renewable energy, support for small and medium-sized enterprises, etc.
Funding under the Ukraine Facility program directly depends on the fulfillment of the indicators set out in the Ukraine Facility Plan. In 2024, more than 36 indicators are planned to be implemented in the areas of improving public financial management, fighting corruption, managing state property, developing human capital, improving the business environment, and developing priority sectors.
It is expected that the last payment under the program will be made in 2028 based on the results of the indicators for the fourth quarter of 2027.
A €6 billion transitional financing mechanism is envisaged for the period until the final launch of the Ukraine Facility program.
As part of the transitional financing agreements, Ukraine is implementing 5 indicators in the areas of public financial management, anti-corruption, business environment development, and land market functioning. Three of them have already been implemented, and two more steps required to receive transitional financing are being developed.
