European Commission Allocates €1.5 Billion to Ukraine as Part of €50 Billion Ukraine Facility Program
The European Union has allocated the second tranche of funding to Ukraine under the Ukraine Facility program, amounting to €1.5 billion, which will support the functioning of the Ukrainian state. This was announced by Ursula von der Leyen, President of the European Commission, on Twitter.
"Ukraine bears a heavy burden for all of us. Today, we are allocating an additional €1.5 billion as part of the €50 billion fund for Ukraine. This is crucial to support the functioning of the state and services in Ukraine, while it stands firm against aggression. Europe remains united and resolute," wrote the President of the European Commission.
The Ukrainian government noted that international support is key to ensuring macroeconomic stability and building a foundation for further economic growth in Ukraine.
"The European Union is the largest donor of budgetary support since February 2022, providing over €31 billion. The implementation of the Ukraine Facility Instrument alongside the European Commission's approval of the 'Ukraine Plan' will help timely and fully meet urgent budgetary needs in the social sphere, as well as facilitate recovery and reconstruction," said Ukrainian Finance Minister Serhiy Marchenko.
The total assistance provided by the EU to Ukraine under the new financing program, following this tranche, amounts to €6 billion. The condition for providing funding is the successful implementation of reforms in public finance management, combating corruption, and developing the business environment.
Recall that The Gaze reported that on April 16, the European Commission approved a reform plan proposed by the Ukrainian government under the Ukraine Facility mechanism. This plan sets out conditions for receiving €50 billion in macro-financial assistance during 2024-2027.
The proposed plan includes 69 reforms and 10 investments, divided into 146 qualitative and quantitative indicators. These reforms cover a wide range of areas, including energy, agriculture, transportation, green and digital transitions, human capital, as well as state-owned enterprises, the business environment, fiscal discipline, and decentralization.
After receiving a positive assessment from the European Commission, approval of the reform plan requires the consent of EU member states, expected within one month. Following this, the European Commission will be able to allocate €1.89 billion as preliminary funding before regular disbursements begin.