United to win: EU gives green light to Ukraine Facility plan

Ukraine's plan, necessary for implementing the EUR 50 billion Ukraine Facility program, was finally approved on May 14 by the Council of the European Union. This year, the Ukrainian government expects to attract 16 billion euros.

The Prime Minister of Ukraine, Denys Shmyhal, and the Ministry of Finance report this.

As noted in the department, the procedure for launching direct budget support within the first component of the Ukraine Facility is almost complete.

Shortly, Ukraine will receive 1.9 billion euros in unconditional financing.

"The approval of the Plan allows the full launch of the Ukraine Facility — our state will receive EUR 1.89 billion in pre-financing," the head of the Ukrainian government said.

Ukraine will receive the rest of the budget support every quarter after fulfilling the indicators provided for in the Plan of Ukraine.

The Ukrainian Ministry of Finance estimates that the EU will provide 16 billion euros in financial aid in 2024, including 3 billion euros in grants.

For reference:

As reported at the European Council meeting, all 27 leaders of the European Union reached a consensus decision regarding adopting the Ukrainian Fund in the multi-year EU budget for 2024-2027 in the amount of €50 billion. Before that, Hungary blocked the adoption of the decision.

In his turn, Zelensky said during a video address to the participants of the special EU summit in Brussels that the unanimous approval by the European Council of the €50 billion Ukraine Fund is a clear signal that Ukraine and Europe will endure because trust in Europe was at stake.

In February 2024, the European Parliament approved the regulations of the Ukraine Facility program. In accordance with the approved regulations, the EU support program for Ukraine, which is 50 billion euros, will operate from 2024 to 2027.

In April, the European Commission backed the Ukrainian government's reform plan under the Ukraine Facility mechanism. The plan outlines the requirements for receiving 50 billion euros in macro-financial aid between 2024 and 2027.