Government aligns Rules for Procurement under the Ukraine Facility with international obligations

The Cabinet of Ministers of Ukraine has approved a new section in the public procurement regulations under martial law, specifying how beneficiaries can utilize funds from the European Union’s Ukraine Facility.

Aligning the procurement process with obligations under the Framework Agreement between Ukraine and the EU on the operation of the Ukraine Facility enhances the clarity of the procurement system and improves the efficiency of using EU funds for recovery and development. This applies to all public procurements funded by the program, including those by government bodies, local communities, educational institutions, healthcare facilities, and other state and municipal entities.

The new section outlines key conditions for beneficiaries:

- Only companies and subcontractors registered in “eligible countries” can participate in procurement procedures. These include EU member states, Ukraine, Western Balkan countries, Georgia, Moldova, European Economic Area countries, and other nations recognized by the European Commission as providing Ukraine with a level of support comparable to that of the EU.

- All goods, including those involved in works and services, must originate from these eligible countries.

- Participants and their beneficial owners must not be subject to European Union sanctions.

“Ukrainian beneficiaries now have clear procurement rules for Ukraine Facility funds. Local communities, schools, colleges, and other entities will be eligible to use EU financial support to purchase necessary equipment, modernize facilities, conduct repairs, and build new premises. We expect a positive response from the European Union regarding this decision, as Ukraine consistently demonstrates its ability to use European financial support responsibly, efficiently, and transparently,” said Deputy Minister of Economy, Environment, and Agriculture Andrii Teliupa.

Background Information 

The Ukraine Facility assistance program was established in 2024 by a decision of the European Parliament and the Council of the EU. Its goal is to facilitate Ukraine financing recovery, modernization, and reforms on its path to EU membership.