The European Union has finally adopted the Plan of Ukraine, necessary for the implementation of the Ukraine Facility Fund for €50 billion.
Ukraine can receive €16 billion in EU funding
According to the Prime Minister of Ukraine, Denys Shmyhal, the approval of the Plan allows the full launch of the Ukraine Facility — our state will receive €1.89 billion shortly.
And in general, within the program's framework this year, we expect to attract €16 billion. It will strengthen our financial stability in the face of a full-scale war with Russia.
Denis Shmyhal
Prime Minister of Ukraine
The head of the government thanked Belgium, which chairs the EU Council, and the EU member states for their high evaluation of the Plan and unwavering support.
In its assessment of the plan, the European Commission noted that when all the proposed reforms and investments are fully implemented, Ukraine's GDP could grow by 6.2% by 2027 and by 14.2% by 2040, and could also lead to a debt reduction of about 10 percentage points of GDP until 2033.
Under what conditions will aid from the EU be provided
The Council of the EU noted that payments will be made to the EU "subject to the implementation of agreed reforms and investments in the form of qualitative and quantitative steps set out in the annexe to the Council's implementing decision."
The adopted decision also provides measures and a schedule for their implementation, equivalent to the support payment schedule. The final qualitative and quantitative steps should be completed by the end of 2027.
In addition, financial support under the Plan in Ukraine will be provided on the condition that Ukraine continues to support and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and guarantee respect for human rights.
Financial support also depends on strengthening the rule of law, the independence of the judiciary, public administration reform, and fighting corruption, including high-level corruption and money laundering.
Ukraine already received €6 billion of financial support in March and April this year for successfully implementing five indicators of the first quarter. Nine indicators must be fulfilled in the second quarter, allowing Ukraine to receive €4.110 billion in September 2024.
In general, the Plan for the Ukraine Facility includes 151 indicators for 69 areas of reforms until 2027.
According to the Plan, Ukraine should receive:
in 2024 — €16 billion,
in 2025 — €12.5 billion,
in 2026 — €7.25 billion,
in 2027 – €1.2 billion
Also, €1.32 billion will be spent in January 2028 to implement the indicators for the 4th quarter—2027 year.
