Ukraine will soon receive approximately €3.5 billion after the Council approved a third payment of non-repayable grants and loans to Ukraine under the Ukraine Facility. The main objective of the Facility is to support Ukraine’s macro-financial stability and recovery, reconstruction and modernisation. With this third disbursement, Ukraine will have received close to €20 billion under the Ukraine Facility since its entry into force a year ago.
The Council concluded on March 17th that Ukraine had satisfied the necessary conditions laid down in the Ukraine Plan in order to receive a third disbursement from the Ukraine Facility.
Ukraine successfully demonstrated that it had implemented 13 different steps. These include, among others, passing reforms to increase the use of renewable energy; increasing the autonomy of the energy regulator; simplifying border-crossing procedures in line with EU standards; adopting a strategy for agriculture and rural development (including the removal of land mines from agricultural areas); and continuing work on listing its strategic and critical raw materials.
The Ukraine Plan sets out Ukraine’s intentions regarding the recovery, reconstruction and modernisation of the country, and a timetable for the reforms it plans to undertake as part of its EU accession process in the next four years.
Background:
The Ukraine Facility, which entered into force on 1 March 2024, provides up to €50 billion of stable financing, in grants and loans, to support Ukraine’s recovery, reconstruction, and modernisation for the period 2024 to 2027.
Of this, up to €32 billion is indicatively earmarked to support the reforms and investments set out in the Ukraine Plan, whereby disbursements are conditional upon Ukraine fulfilling a number pf pre-established conditions. Since its entry into force, the Ukraine Facility has already disbursed €6 billion by way of bridge financing, €1.89 billion in pre-financing, and two instalments of approximately €4.2 and €4.1 billion.
More information: Council of the EU
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