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EU Provides New Funding to Ukraine Following Key Reform Success

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EU Provides New Funding to Ukraine Following Key Reform Success. Source: The Gaze collage by Leonid Lukashenko
EU Provides New Funding to Ukraine Following Key Reform Success. Source: The Gaze collage by Leonid Lukashenko

The European Union has approved the sixth tranche of financial support for Ukraine, amounting to around €2.3 billion.

The Gaze reports on it, referring to a press release of the Council of the EU.

These funds are provided under the Ukraine Facility and are aimed at supporting Ukraine’s macro-financial stability and the functioning of its public administration. 

The sixth tranche became possible due to Ukraine’s successful completion of eight steps required for this payment, as well as one outstanding step from the fourth tranche. Overall, Ukraine has now completed 63 out of the 68 steps outlined in the Ukraine Plan.

Funding under the Ukraine Facility is closely linked to the Ukraine Plan, which sets out the country’s strategy for recovery, modernization, and reforms in line with EU accession goals. 

Since entering into force on 1 March 2024, the Facility provides up to €50 billion in grants and loans for 2024–2027, with up to €32 billion specifically earmarked for implementing reforms and investments.

The previous five tranches ranged from €1.8 to €4.2 billion, and the rapid approval of the sixth tranche reflects Ukraine’s proactive implementation of reforms. 

"This quick consecutive provision of funds mirrors Ukraine’s speed and commitment to implement reforms aligned with the country’s EU accession goals," the statement reads.

Achievements include reforms in public finance management, the judicial system, financial markets, human capital, the business environment, decentralization and regional policy, critical resource management, as well as steps toward the green transition and digital reconstruction of the country.

In 2025, the fourth tranche of financial assistance to Ukraine under the Ukraine Facility was reduced due to incomplete reforms. 

Ukraine had implemented only 13 out of the 16 reforms required by the European Union, with unfinished steps relating to decentralization, the Asset Recovery and Management Agency (ARMA) law, and the selection of judges for the High Anti-Corruption Court. As a result, instead of the planned €4.5 billion, the EU approved a partial disbursement of €3.05 billion.

To address these delays, on 1 August 2025, the Cabinet of Ministers of Ukraine amended the Ukraine Plan, the package of reforms linked to EU funding. The amendments updated deadlines, clarified steps, and added references to relevant EU legislation. 

Economy Minister Oleksiy Sobolev emphasized that the scope and content of Ukraine’s commitments remained unchanged, while some reforms would be implemented faster than initially planned.

The European Commission subsequently approved the revised Ukraine Plan, noting that the changes make the plan more practical and ensure smoother implementation, particularly in the energy and financial sectors. 

As The Gaze reported earlier, the European Union provided Ukraine with more than €4 billion in financial support on the eve of the country’s 34th Independence Day, combining allocations under the Ukraine Facility and funds from frozen Russian assets. 

Read also on The Gaze: How Ukraine Is Integrating into the EU Prior to Official Membership

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