EU finally approves €50bn of support for Ukraine

29 February 03:25

The Council of the European Union has approved the launch of the Ukraine Facility with a total volume of €50 billion for 2024-2027. This was announced by the Prime Minister of Ukraine Denys Shmyhal on his telegram channel , Kommersant Ukrainian reports

“The EU has finally approved a 4-year support programme for Ukraine worth €50 billion. This is the Ukraine Facility instrument that will help our government finance the budget deficit, increase investment in our economy and accelerate our EU membership. We expect the first disbursement in March,”

– he wrote.

According to the Ministry of Finance of Ukraine, the Ukraine Facility is a unique instrument to support Ukraine’s economic development and recovery on its path to EU membership. It will provide support based on jointly agreed plans and priorities by the Government of Ukraine and the European Commission.

Over 2024-2027, Ukraine will receive about €39 billion in direct budgetary funding, of which more than €5 billion will be grants.

The day before, the European Parliament supported the decision on the Ukraine Facility, a multi-year financial assistance programme for Ukraine worth €50 billion. The EU Council’s decision is the final step in launching this instrument.

Earlier, the European Council approved the relevant proposal of the European Commission at an extraordinary meeting on 1 February this year, convened by the Belgian Presidency.

The Ukraine Facility is a €50 billion financing mechanism for Ukraine for the period 2024-2027. As previously reported by the EU, this programme 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 programmes aimed at implementing the reforms on which Ukraine’s accession to the EU depends.

The resolution emphasises that EU support should be directed in three areas.

The first is 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.

The second is Ukraine’s investment framework to mobilise investment and increase access to finance.

The third is assistance on the path to European integration to mobilise technical expertise and capacity building.

Following the completion of all necessary European procedures, the first tranche of the Ukrainian Fund is expected to reach Ukraine in March.

Дзвенислава Карплюк
Editor