EU Council to start negotiations with the European Parliament on the launch of the Ukraine Facility
On Wednesday, 10 January, ambassadors of EU member states agreed and approved a mandate to negotiate with the European Parliament on the creation of the Ukraine Facility, a special financial instrument to support Ukraine over the period 2024-2027.
Thus, the Ukraine Facility programme will combine the EU's budgetary support for Ukraine until 2027 into a single comprehensive instrument. At the same time, the approved mandate does not include issues related to the overall scope of the Ukraine Facility programme, which will be subject to further negotiations.
"The decision of the EU Council to start negotiations on the launch of the Ukraine Facility programme is another evidence of our partners' steadfastness in supporting Ukraine. We are currently strictly following the agreed plan. In February, we expect the renewal of the EU's multi-year financial programme until 2027, as well as the final approval of the Ukraine Facility, which will give a full start to the programme and allow us to receive the necessary macro-financial assistance," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
The next step will be to hold official trilateral negotiations between the EU Council, the European Parliament and the European Commission on the establishment of the Ukraine Facility programme. The agreement reached in the course of the negotiations will come into force after the Council and the European Parliament formally adopt the relevant decision.
According to the decision, the Ukraine Facility programme will consist of three components. The first component will be based on the Ukraine Facility Plan, a technical document required for the implementation of the EU's financial support programme for Ukraine. The plan will contain a programme of priority reforms that will lay the foundation for further economic recovery and development and facilitate integration with the EU. The progress in meeting the Plan's indicators will be rewarded with quarterly financial support.
The second component of the Ukraine Facility programme will be a special investment instrument to cover risks in priority sectors. Investors will have access to financing under this instrument through the EBRD, EIB and other international institutions.
The third component of the Ukraine Facility programme is technical assistance and other measures to facilitate the implementation of structural reforms on the path to Ukraine's full membership in the European Union.