European Parliament approves €50 billion in aid to Ukraine
27 February 2024 14:50
The European Parliament has approved the creation of an aid fund for Ukraine and the transfer of €50 billion over four years. The decision was made during a plenary session of the European Union’s legislative body.
“536 deputies voted in favour of the resolution, 40 voted against, and 39 abstained. A total of 615 deputies took part in the voting.
The document is yet to be approved by the EU Council and will enter into force after publication in the Official Journal.
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 .
