European Union approves Plan for Ukraine Facility – Ukraine to receive EUR 1.89 billion in pre-financing
On Tuesday, 14 May, the Council of the European Union approved the Plan for the Ukraine Facility. The implementation decision paves the way for the signing of the relevant financing documents under the programme, as well as the further implementation of the Ukraine Facility in 2024-2027. Approval of the Plan will also allow the European Commission to provide Ukraine with up to EUR 1.89 billion in pre-arranged unconditional funding. This tranche is expected once Ukraine signs the Framework Agreement and ratifies it in the Verkhovna Rada.
“The Government has managed to prepare a comprehensive economic development plan in record time – the development of such documents in the EU usually takes up to 2 years. I would like to thank our European partners for their appreciation of the document and for their support at all stages of the work. Over the next four years, the implementation of the Plan will allow us to create favourable conditions for economic recovery and European integration in many areas of the country’s life.
Approval of the Plan will also allow the European Commission to provide Ukraine with up to EUR 1.89 billion in pre-financing. In the future, we will receive regular payments for meeting the quarterly indicators set out in the Plan over the 4 years of the programme,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
Ukraine has already received EUR 6 billion of financial support in March and April this year for the successful implementation of 5 indicators of the first quarter. In the second quarter, 9 indicators need to be met, which will allow Ukraine to receive EUR 4.110 billion in September 2024.
In addition, along with the approval of the Plan, the Government of Ukraine held negotiations with the European Commission and agreed on a Framework Agreement that will become the legal basis for Ukraine to receive sustainable financing under the Ukraine Facility until 2027, subject to the successful implementation of the Plan. The agreement also provides for enhanced cooperation on financial monitoring and audit with relevant EU institutions such as OLAF and the European Court of Auditors.
In total, the Plan for the Ukraine Facility includes 151 indicators in 69 reform areas, which are scheduled to be implemented by 2027. The Plan was developed in full synchronisation with Ukraine’s key international partners. In this regard, the indicators envisaged by the Plan partially correspond to Ukraine’s existing international commitments under other agreements.
Ukraine is to receive EUR 16 billion in 2024, EUR 12.5 billion in 2025, EUR 7.25 billion in 2026, EUR 1.2 billion in 2027, and EUR 1.32 billion in January 2028 for meeting the indicators of the Ukraine Facility in Q4 2027.