Ukraine to receive more than €3 billion under the Ukraine Facility program: partial tranche due to unimplemented reforms
8 August 2025 18:47
on August 8, 2025, the EU Council decided to provide Ukraine with another tranche of €3.2 billion under the Ukraine Facility program, "Komersant Ukrainian" reports.
This funding is aimed at supporting macro-financial stability, the functioning of public administration and the implementation of reforms necessary for Ukraine’s integration into the EU.
What is the Ukraine Facility?
- The total volume of the program is €50 billion for 2024-2027.
- Components:
- €38.27 billion – budget support (soft loans and grants)
- €6.97 billion – investment fund
- €4.76 billion – technical and administrative assistance
- Funds are provided subject to the implementation of the Ukraine Action Plan, a strategic document containing a schedule of reforms aligned with the EU accession goals.
Why was the tranche cut?
- Ukraine has implemented 13 out of 16 planned reforms.
- Therefore, the amount of the tranche has been reduced from the expected €4.5 billion to €3.05 billion.
- The unimplemented reforms include:
- Decentralization
- Reform of the Asset Recovery and Management Agency (ARMA)
- Selection of judges to the High Anti-Corruption Court
Inflation in 2025: dynamics and deflation
- In July 2025, deflation was recorded – consumer prices decreased by 0.2% compared to June.
- This is the first decline in prices in 2025.
- Annual inflation in July was 14.1%, while core inflation was 11.7%.
- Vegetables (-23.9%) and sugar (-2.8%) fell in price the most, while eggs went up by 82.4% year-on-year.
- The last time deflation was recorded in Ukraine was in August 2023, when prices fell by 1.4%.
Forecast for 2025:
Under the Ukraine Facility, Ukraine is to receive up to €12.5 billion in 2025, including €1.5 billion in grants.
According to the NBU’s updated forecast, inflation is expected to reach 9.7% by the end of the year.
The government forecasts 9.5% December to December.
