Ukraine will receive almost 4.2 billion euros of European funds after the EU Council gave the green light to the first payment of grants and loans under the Instrument for Ukraine, created by Brussels to support the macrofinancial stability of the country at war with Russia and the functioning of its public administration. In a decision adopted today, the Twenty-seven established that Kiev has fulfilled the conditions and necessary reforms foreseen by the Plan and set as a precondition for receiving the funds. These reforms, the institution explains in a note, concern the management of public finances, the governance of state-owned enterprises, the business environment, energy and demining.
✅ Written procedure completed!
With the completion of the written procedure, the Council has adopted an implementing decision today, authorizing the first payment of nearly €4.2 billion under the #UkraineFacility. This decision supports Ukraine’s macro-financial stability and… https://t.co/xeSqqO8r0E
— Hungarian Presidency of the Council of the EU 2024 (@HU24EU) August 6, 2024
The Commission also stressed the importance of allocating funds as soon as possible, given the country’s difficult fiscal situation. The Plan for Ukraine sets out Ukraine’s intentions for the recovery, reconstruction and modernisation of the country and the reforms it intends to undertake as part of the EU accession process over the next four years, and could lead to support of up to €50 billion through the Fund for Ukraine instrument, which entered into force on 1 March 2024, which provides grants and loans to support Ukraine’s recovery, reconstruction and modernisation in the period 2024-2027.
Of this, up to €32 billion is indicatively earmarked to support the reforms and investments envisaged in the plan, with disbursements subject to the achievement of the indicators identified by Brussels. Since its entry into force, the Facility for Ukraine has already disbursed €6 billion in bridge financing and €1.89 billion in pre-financing, after meeting the agreed political conditions.
