EU revises reform plan for Ukraine Facility: new deadlines and a chance for a tranche
22 September 22:49
The European Commission has approved amendments to the Ukraine Facility Plan, a reform program on which financial assistance to Ukraine depends. This was announced by the European Commission spokesperson Guillaume Mercier, "Komersant Ukrainian" reports.
According to European Commission spokesman Guillaume Mercier, the revised document was submitted to the EU Council on September 18. It will either be adopted or further amended.
What changes were made
- emphasis on more practical and effective implementation of reforms in the current environment;
- postponementof some deadlines in the energy and financial markets to earlier dates;
- specifying the stages of reforms – in particular, the adoption of the electricity integration package.
The European Commission explained that this should make the process more transparent and predictable.
Why it is important
The Ukraine Facility is a key EU program to support Ukraine in 2024-2027. It provides up to €50 billion in financing, of which:
- €33 billion in concessional loans,
- €17 billion in grants.
In August, Ukraine received a €3.2 billion tranche. The amount was less than the maximum, as Kyiv fulfilled only 13 of the 16 mandatory steps. If all of them had been fulfilled, the tranche would have amounted to €4.5 billion.
What’s next
- The EU Council must approve the changes or make amendments.
- Meeting the new deadlines will have a direct impact on future tranches, which remain Ukraine’s main financial instrument for reconstruction and macrofinancial stability.
As a reminder, the Ukraine Facility was adopted in early 2024 as a multi-year plan to support Ukraine during the war.
Previously, EU assistance was provided in shorter packages of several months or a year, which created risks for budget planning.
The new mechanism provides more predictable financial support, but ties it to the implementation of clear reforms.
