Ukraine will soon receive more than 4.1 billion euros in funding. The Council of the EU gave the green light to the second tranche of grants and loans within the framework of the EU Program for Ukraine, aimed at supporting the macro-financial stability of Ukraine and the functioning of its public administration.
Points of attention
- The Council of the EU has approved the provision of a second tranche of 4.1 billion euros to support Ukraine's macro-financial stability and public administration.
- The financial assistance from the EU Program for Ukraine will contribute to the recovery, reconstruction, and modernization of the country, fostering economic development and investment.
- The European Union has disbursed over 12 billion euros in budget support to Ukraine this year, with plans to provide an additional 4.2 billion euros by the end of the year under the Ukraine Facility program.
- The EU support program for Ukraine, totaling 50 billion euros, will focus on supporting reforms and investments outlined in the Ukrainian Plan and will be in effect from 2024 to 2027.
- The disbursement of funds is contingent on Ukraine meeting specific indicators and conditions set forth in the agreement with the EU, aimed at advancing Ukraine's fiscal stability and progress in its EU accession process.
The Council of the EU approved providing Ukraine with the second tranche of 4.1 billion euros
The Council concluded that Ukraine has fulfilled the necessary conditions and reforms provided for in the Plan of Ukraine to receive the funds that will be paid from the Fund of Ukraine.
The Council also emphasized the importance of allocating money as soon as possible, given the difficult fiscal situation in Ukraine.
The Plan for Ukraine outlines Ukraine's intentions to restore, reconstruct and modernize the country, as well as the reforms it plans to carry out as part of the EU accession process over the next four years.
In May 2024, the Council concluded that the preconditions for Ukraine receiving up to 50 billion euros of support under the Ukrainian Fund were met, and in August, the first EU tranche of 4.2 billion euros was paid.
The Ukraine Facility program: what is known
In February 2024, the European Parliament approved the regulations of the Ukraine Facility program. The EU support program for Ukraine in the amount of 50 billion euros will be valid from 2024 to 2027.
Of this amount, up to 32 billion euros have been allocated to support reforms and investments outlined in the Ukrainian Plan, according to which payments will be conditioned on the achievement of certain indicators.
The Ukrainian Fund has already disbursed 6 billion euros in the form of interim financing, 1.89 billion euros in the form of pre-financing and the first installment of almost 4.2 billion euros, of which 1.5 billion euros in the form of irrevocable financial support and more than 2.6 billion euros in the form of loans.
Since the beginning of the year, the EU has provided Ukraine with over 12 billion euros in budget support. By the end of the year, Ukraine plans to receive another 4.2 billion euros from the European Union as part of the Ukraine Facility.
