Ukraine has received EUR 4.5 billion in bridge financing from the European Union under the Ukraine Facility programme. This was announced by First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko.

It is expected that Ukraine will be able to receive the second tranche of EUR 1.5 billion in April 2024, following the assessment of the implementation of the five required indicators.

“We are one step away from the start of the Ukraine Facility programme. This week, the Government approved the Ukraine Plan for the implementation of this programme, and now we are waiting for its evaluation by the European Commission and approval by the committee of EU member states. After that, the Ukraine Facility programme will finally enter into force. Its implementation will help to significantly strengthen the resilience of the national economy, improve the business climate, increase investment inflows and GDP growth. The funds that Ukraine has now received from the EU will be used to cover the current needs of the state budget and will help ensure macroeconomic stability,” said Yuliia Svyrydenko.

Under the Ukraine Facility, Ukraine can receive up to EUR 1.5 billion per month as part of the bridge financing until the final approval of the Ukraine Plan. At the same time, the bridge financing was launched on 31 December 2023. This allowed Ukraine to attract EUR 4.5 billion in March 2024 in total for the first three months of the year. Ukraine will be able to receive the next EUR 1.5 billion in April after meeting the indicators for the bridge financing.

As a reminder, in February 2024, the European Parliament approved the regulations of the Ukraine Facility programme. According to the approved regulations, the amount of EU support for Ukraine in 2024-2027 will amount to EUR 50 billion, of which EUR 38.27 billion will be allocated to support the state budget.

The Ukraine Plan is a technical document required to implement the EU’s financial support programme for Ukraine. In total, it includes more than 150 indicators in 69 areas of reforms to be implemented by 2027. The plan was developed in full synchronisation with Ukraine’s key international partners. In this regard, the indicators provided for in the Plan partially correspond to Ukraine’s existing international commitments under other agreements.

The Ukraine Plan also comprises 16 investment indicators, which are included in the general list of changes. To meet them, it is necessary to continue and strengthen programmes for infrastructure development, demining, renewable energy, support for small and medium-sized enterprises, etc.

Over 36 indicators are planned to be implemented in 2024 in the areas of improving public financial management, fighting corruption, managing state property, developing human capital, improving the business environment and developing priority industries.

The last instalment under the programme is expected to be disbursed in 2028, based on the performance of the indicators for the fourth quarter of 2027.

The Plan is not an overall recovery strategy, but is only one of the components of the Government’s measures for the development and recovery of Ukraine. The main focus of the Plan is on the development of sectors and industries that can have the greatest positive effect on the growth of the national economy.

The preparation of the Ukraine Plan was led by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, and the team of the Ministry of Economy in cooperation with other ministries and relevant government agencies, as well as in constant consultation with representatives of the European Commission.

Representatives of the business community, NGOs, the Parliament, and representatives of the regions were also actively involved in the development of the Plan. The Kyiv School of Economics, with support from UK International Development, provided analytical and organisational support in the development of the document. In total, 133 proposals from business and 84 from NGOs have been partially or fully taken into account in the plan.