Ukraine signs agreement with EU to receive €6bn in aid
12 March 2024 23:51
Ukraine and the European Union have signed an agreement on transitional financing for Ukraine under the Ukraine Facility programme, which will provide €6 billion in March-April 2024.
First Vice Prime Minister and Minister of Economy Yulia Svyrydenko announced this on her Facebook page, Kommersant ukrainskyi reports
“These 6 billion euros will be used to cover the current needs of the state budget in March and April this year. Ukraine, in turn, is committed to implementing certain reforms envisaged in the Plan by the beginning of 2024,” Svyrydenko wrote.
The first instalment of €4.5 billion is expected to be transferred to the state budget of Ukraine in March. The rest of this amount – €1.5 billion – will be received in April 2024 after the European Commission assesses the indicators fulfilled.
According to Svyrydenko, Ukraine is currently implementing 5 indicators of the Plan in such areas as public finance management, fighting corruption, business environment development, etc. The Ukrainian authorities have already fulfilled three of the indicators.
Two more steps remain to be taken to receive transitional funding. They are currently under development. These include bringing the State Land Cadastre and the State Register of Real Property Rights into line, as well as measures to support the implementation of industrial parks as a tool for attracting investment to the de-occupied territories,
– Svyrdenko said.
After the approval of the Ukraine Plan for the Ukraine Facility, the state budget is expected to receive €1.9 billion in unconditional funding.
Ukraine will receive the rest of the budget support on a quarterly basis after meeting the indicators set out in the Ukraine Plan.
As a reminder, on 27 February, the European Parliament adopted a pre-agreed version of the document introducing a new €50 billion support mechanism for Ukraine Facility for the period 2024-2027.
The next day, on 28 February, the document was finally approved by the EU Council.
Its funds will be used to support Ukraine and implement reforms for the country’s future accession to the EU.
