Ukraine will receive a tranche of EUR 4.2 billion from the EU in December
9 December 2024 16:14
The Council of the European Union has today voted to approve the second planned disbursement to Ukraine in the amount of about 4.2 billion euros under the EU’s Ukraine Facility initiative. This was reported by the Ministry of Economy of Ukraine, "Komersant Ukrainian" reports.
As noted, the implementation decision of the EU Council is the final stage of approval before the funds are transferred to the state budget. In November, the European Commission approved the allocation of the tranche. The money should arrive in December, bringing the total amount of funding to €16.1 billion in 2024.
“Ukraine is successfully and timely implementing the reforms envisaged by the Ukraine Facility Plan, consistently fulfilling all the indicators of the plan, and this is the key to stable financial support from the European Union. We are grateful to our partners for the positive decision on the new tranche of over EUR 4 billion. It will help us to strengthen Ukraine’s macro-financial stability and ensure social spending,” said Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine.
As you know, the European Commission and the Council of the European Union evaluated Ukraine’s regular report submitted in October and confirmed the fulfillment of all nine indicators of the Ukraine Facility Plan for the second tranche. These include legislative reforms in the areas of anti-corruption, business environment, labor market, regional policy, energy market, and environmental protection.
What does the Ukraine Facility initiative envisage?
The Ukraine Facility is a support mechanism for Ukraine aimed at ensuring macro-financial stability and the effective functioning of state institutions. The Ministry of Economy of Ukraine is the national coordinator of the Ukraine Facility, which organizes and monitors the implementation of the Plan and prepares quarterly reports for the European Commission. After a positive assessment by the European Commission and EU member states, the decision to allocate funds is approved by the EU Council.
The plan for the Ukraine Facility was approved by the Cabinet of Ministers of Ukraine in March this year. It was then endorsed by the EU and became the basis for the implementation of the EU’s financial support program for Ukraine in 2024-2027.
The Ukraine Facility Plan envisages the implementation of structural reforms in the public sector, a number of economic reforms aimed at developing the business climate and entrepreneurship, as well as steps to develop priority sectors that can ensure rapid economic growth.
In total, the Ukraine Facility Plan includes more than 150 indicators in 69 reform areas to be implemented by 2027. The Plan was developed in full synchronization with Ukraine’s key international partners. In this regard, the indicators envisaged in the Plan partially correspond to Ukraine’s existing international commitments under other agreements.
The Ukraine Facility Plan also includes 16 investment indicators that are included in the general list of changes. To meet them, it is necessary to continue and strengthen programs for infrastructure development, demining, renewable energy, support for small and medium-sized enterprises, etc.
Funding under the Ukraine Facility program directly depends on the fulfillment of the indicators set out in the Ukraine Facility Plan. In 2024, more than 36 indicators were to be implemented in the areas of improving public financial management, fighting corruption, managing state property, developing human capital, improving the business environment, and developing priority sectors.
