EU to allocate €5.27 bln to Ukraine over next four years
Economy Minister Yuliia Svyrydenko signed a financial agreement between Ukraine and the EU. This agreement regulates the receipt of €5.27 billion of grant aid under the Ukraine Facility over the next four years.
The Ministry of Economy stated this, Rubryka reports.
The decision to attract grant support from the EU was made at the government meeting last week. Ukraine's Cabinet of Ministers has finalized the agreement.
According to Svyrydenko, this is the last agreement necessary to fully launch the Ukraine Facility program.
"The signing of the Agreement on the attraction of grant support for €5.27 over the next four years will contribute to the stabilization of the macroeconomic and financial situation in the country and provide the necessary resources to support key sectors of the economy," the minister said.
The total budget support within the program's first component, including loan and grant funds, amounts to €38.27 billion.
The program will ensure the receipt of tranches in accordance with the quarterly schedule of indicators.
In 2024, Ukraine expects to receive €16 billion of support, of which €3 billion will be grant aid.
Reference
Ukraine Facility is a multi-year financial assistance program from the EU for Ukraine. It provides €50 billion during the years 2024-2027. Of this amount, €39 billion will be directed to the state budget to strengthen macro-financial stability. The rest is a special investment instrument for covering risks in priority sectors, covering interest on loans, etc.
What is known about the approval of €50 billion in aid for Ukraine
As reported at the European Council meeting, all 27 leaders of the European Union reached a consensus decision regarding the adoption of the Ukrainian Facility 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 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 in the amount of €50 billion will operate from 2024 to 2027.
Ukraine's government, in turn, adopted a plan to fulfill the conditions for receiving this assistance. The plan concerns European approaches to public administration reform, the fight against corruption, and economic and sectoral reforms in various fields, from the energy industry to the agricultural sector. In addition, the document prescribes "cross-cutting directions," such as the "green" transition, digitalization, and European integration.
On May 14, it became known that the plan for Ukraine, necessary for implementing the €50 billion Ukraine Facility program, was finally approved by the Council of the European Union. This year, the Cabinet of Ministers expects to attract €16 billion.
On May 22, the First Deputy Prime Minister of Ukraine, the Minister of Economy of Ukraine, Yuliia Svyrydenko, and the EU Commissioner for European Neighborhood Policy and Enlargement Negotiations, Várhelyi Olivér, signed the Framework Agreement on financing from the European Union to implement the Ukraine Facility.
