EU Council approves the Plan for the Ukraine Facility

On Tuesday, May 14, the Council of the European Union adopted an implementing decision positively assessing Ukraine’s Plan for the Ukraine Facility, which sets out the Government of Ukraine’s intentions for the recovery, reconstruction and modernization of the country, as well as reforms within the framework of the EU accession process over the next four years.

The EU Council notes that with this plan, Ukraine has fulfilled the pre-condition for receiving support under the €50 billion Ukraine Facility and that regular disbursements can now begin.

The Council’s decision paves the way for the signing of the relevant financing documents under the program and the further implementation of the Ukraine Facility in 2024-2027, which provides for assistance in the amount of €50 billion.

Approval of the Plan will also allow the European Commission to provide Ukraine with up to €1.89 billion in preliminary unconditional financing. The tranche is expected after Ukraine signs the Framework Agreement and its ratification by the Verkhovna Rada.

Disbursements to Ukraine will be made by the EU subject to the implementation of agreed reforms and measures aimed at strengthening growth, maintaining macroeconomic stability, improving the fiscal situation and supporting Ukraine’s further integration into the EU.

Financial support under the Plan will be provided on the condition that Ukraine continues to adhere to and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and guarantees respect for human rights. Financial support is also contingent on strengthening the rule of law, maintaining the independence of the judiciary, strengthening public administration reform, and combating corruption and money laundering.