Brussels (The Brussels Morning Newspaper) – The Committee of Permanent Representatives of EU Member States assumed an executive decision on transferring to Ukraine the first tranche of economic support in the amount of EIR 4.2 billion, within the framework of the Ukraine Facility in the multi-year EU budget 2024-2027.
What Is the Latest Tranche of EU Support for Ukraine?
According to the press service of the Hungarian Presidency of the EU: “Today, Ambassadors adopted the first instalment under the Ukraine Plan of the Ukraine Facility Regulation, paving the way for the transfer of nearly €4.2 bn to support Ukraine’s recovery, reconstruction, and modernisation,” the statement reads.
The EU Council will now endorse the corresponding decision in writing. On July 17, the European Commission issued a positive assessment of the possibility of distribution of this tranche because Kyiv has satisfactorily fulfilled nine reform indicators.
What Are the Key Components of the Ukraine Facility?
Kyiv will welcome up to 50 billion euros in the form of assistance and loans for the period 2024-2027 under the Fund for Ukraine. On February 28, the EU Council agreed on a package of legislation related to the review of the EU’s long-term budget for 2021-2027, including provisions for the design of a fund for Ukraine worth EUR 50 billion (EUR 17 billion in grants and 33 billion euro loans).
How Will the EU Continue to Support Ukraine’s Recovery?
The EU Council states that it stands firmly with Ukraine and its people and will persist in providing political, financial, economic, humanitarian, military and diplomatic backing for as long as it takes, and as intensely as required. The Ukraine Facility delivers up to €50 billion of stable financing, in assistance and loans, to support Ukraine’s recovery, reconstruction, and modernisation throughout 2024 to 2027. The decision confirming the Ukraine Facility entered into force on 1 March 2024.
What Has Been Achieved with the €8 Billion Already Disbursed?
So far €8 billion of the Ukraine Facility have been spent. Up to €32 billion has been committed to support reforms and investments outlined in the ‘Ukraine plan’. Other disbursements will be dependent on specific criteria being fulfilled.
In the ‘Ukraine plan’ presented on 20 March 2024, Ukraine outlined its vision for reconstruction, modernisation and the reforms it plans to undertake as part of its EU accession process. On 14 May 2024, the Council passed the plan a positive assessment. Between 2022 and 2023, the EU gave €25.2 billion in EU macro-financial allowance for Ukraine, in the form of loans and grants. The EU’s help sought to provide short-term financial relief, finance Ukraine’s immediate requirements, and ultimately back Ukraine on its path towards European integration.
