On Wednesday, 22 May, Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine and EU Commissioner for European Neighbourhood Policy and Olivér Várhelyi signed a Framework Agreement on EU funding under the Ukraine Facility.

The agreement defines the mechanisms of financial cooperation between the EU and Ukraine, in particular on the management and control of the use of funds under the Ukraine Facility, as well as joint measures to prevent corruption. The next step is the ratification of the document by the Verkhovna Rada, after which the agreement will enter into force.

“The agreement defines the practical parameters of financial support under the Ukraine Facility – it is a guideline for coordination, monitoring, reporting and much more. It mainly reflects the procedures that will be aimed at efficient, transparent and accountable use of financial resources, which is a prerequisite for further European integration,” said Yuliia Svyrydenko.

Thus, according to the Agreement, Ukraine undertakes to ensure a high level of transparency and control in the use of funds provided by the European Union and protection of its financial interests. This includes the introduction of a management and control system, regular reporting, compliance with EU sanctions requirements, and the fight against corruption.

The Agreement provides for close cooperation between Ukrainian authorities and EU institutions, which will also contribute to European integration. To this end, Ukraine will actively cooperate with the European Commission, the European Anti-Fraud Office (OLAF) and the European Court of Auditors. In particular, the bodies involved will exchange information on the use of funds, coordinate their actions on the implementation of financial initiatives, conduct joint audits and inspections, and develop and implement measures to prevent corruption and fraud.

The National Coordinator, namely the Ministry of Economy, will be the key body for interaction with the European Commission and will ensure effective management and monitoring of the use of funds provided by the European Union. In particular, the National Coordinator will be responsible for preparing and submitting reports, as well as verifying the implementation of the steps of the Ukraine Plan adopted for the Ukraine Facility.

The agreement also provides for the establishment of an Audit Board, which will include professional auditors, financial control experts, and anti-corruption experts. The Board will ensure effective audit and monitoring and will cooperate with other supervisory and anti-corruption bodies to ensure a comprehensive approach to controlling the use of funds.