On 28 June, the Cabinet of Ministers approved the Financial Agreement between Ukraine and the European Union. This agreement regulates the receipt of grant assistance under the Ukraine Facility in the amount of EUR 5.27 billion over the next four years. The agreement is scheduled to be signed next week.
In total, budget support under the first component of the programme, including loans and grants, amounts to EUR 38.27 billion. The programme will provide tranches in accordance with the quarterly schedule of indicators. In total, Ukraine expects to receive EUR 16 billion of support in 2024, of which EUR 3 billion will be in the form of grants.
Ukraine expects the next payment after signing the relevant agreements and meeting the indicators for Q2 2024. According to the report, Ukraine is expected to receive EUR 4.11 billion in macro-financial support, of which EUR 1.5 billion will be in the form of grants.
“There is still a lot of work to be done behind these tranches. Today, at the Government meeting, we also fulfilled 2 more indicators for the 2nd quarter of 2024: we adopted the National Mine Action Strategy until 2033 and approved the Budget Declaration for 2025-2027. In total, by 2027, we have to fulfil 151 indicators in 69 reform areas. The financial assistance of EUR 7.9 billion already received under the Ukraine Facility has allowed us to finance priority needs, such as pensions, social benefits and others,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
According to her, the Ukraine Facility will help stabilise the macroeconomic and financial situation in the country and provide the necessary resources to support key sectors of the economy. This includes both private and public investment projects aimed at restoring and developing Ukraine. The EU’s support will contribute to Ukraine’s resilience in the fight against russian aggression and help ensure sustainable growth in the long term.