EU Council approves €4.2 bln allocation for Ukraine via Ukraine Facility

On December 9, the European Union Council voted to approve Ukraine's second planned payment of approximately 4.2 billion euros under the EU Ukraine Facility initiative.

The Ministry of Economy of Ukraine reported that.

The final decision on implementing the EU Council's plans marks the last step in coordinating the budget before the state receives funds. In November, the European Commission greenlit the distribution of the tranche, which is expected to arrive in December. This will bring the total financing amount for 2024 to 16.1 billion euros.

"Ukraine is successfully and timely implementing the reforms provided for in the Plan for the Ukraine Facility. We are steadily fulfilling all the plan indicators, which 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 4 billion euros. It will help us strengthen Ukraine's macro-financial stability and ensure social spending. We continue to work on the implementation of the fourth quarter indicators and the implementation of reforms. This not only brings us closer to the European Union but also allows business and partners to plan their work better," the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, Yuliia Svyrydenko, emphasized.

The European Commission and the Council of the European Union have reviewed Ukraine's second report, submitted in October, and have verified that all nine indicators stated in the Ukraine Facility Plan have been successfully fulfilled. These indicators include legislative changes in the fight against corruption, business environment enhancement, labor market improvements, regional policy, energy market developments, and environmental protection measures.

For reference:

The Ukraine Facility is a mechanism to support Ukraine aimed at ensuring macro-financial stability and the effective operation of state institutions. In accordance with the Plan of Ukraine, the Ministry of Economy is the national coordinator of the Ukraine Facility. The Ministry ensures the organization and monitoring of the implementation of the Plan and the quarterly preparation of reporting documentation 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.