On July 9, Minister of Economy Yulia Svyrydenko signed a financial agreement between Ukraine and the EU, which regulates the receipt of grant aid within the Ukraine Facility for 5.27 billion euros over the next four years.
Points of attention
- The Ukraine Facility program will contribute to the stabilization of the macroeconomic situation in Ukraine and provide the necessary resources to support key sectors of the economy.
- According to the targeted plan, Ukraine expects to receive 16 billion euros of support in 2024, of which 3 billion will be grant aid.
- The Ukraine Facility program provides for the provision of 50 billion euros during 2024-2027 to support macro-financial stability and investments in priority sectors.
EU support program launched in Ukraine
The decision to attract grant support from the EU was made at a government meeting. The Cabinet has finalized the agreement.
According to Svyridenko, this is the last agreement that is necessary to fully launch the Ukraine Facility program.
The signing of the agreement on attracting financial support for €5.27 over the next four years will contribute to the stabilisation of the macroeconomic and financial situation in the country and provide the necessary resources to support critical sectors of the economy
Yulia Svyrydenko
Minister of Economy
The total budget support within the program's first component, including loan and grant funds, amounts to 38.27 billion euros. The program will ensure the receipt of tranches by the quarterly schedule of indicators.
In general, in 2024, Ukraine expects to receive 16 billion euros of support, of which 3 billion euros will be grant aid.
Ukraine Facility is a multi-year financial assistance program from the EU for Ukraine. It provides for the provision of 50 billion euros during 2024-2027. Of this amount, 39 billion euros will be directed to the state budget to strengthen macro-financial stability. The rest is a special investment instrument for covering risks in priority sectors, covering interest on loans, etc.
What is known about the Ukraine Facility program
On February 1, EU leaders agreed to provide Ukraine with 50 billion euros in macro-financial assistance designed for four years.
Ukraine will receive funds for compliance with a number of prerequisites: the continuation of democratic mechanisms, including a multi-party parliamentary system and the rule of law, guaranteeing respect for human rights, in particular minorities.
Ukraine has already approved a reform plan allowing it to receive financing under the Ukraine Facility.
EU leaders will debate the program every year, and in two years, they can propose to the European Commission a review of the entire multiannual financial framework.
According to the estimated payment plan, Ukraine will receive 16 billion euros in 2024, 12.5 billion euros in 2025, 7.25 billion euros in 2026, and 2.5 billion euros in 2027.
