EU Funds Ukraine

The European Commission has provided a positive assessment for the second regular payment of nearly €4.1 billion under the EU's Ukraine Facility. This funding aims to bolster Ukraine's macro-financial stability and support the functioning of its public administration. Once approved by the Council, this decision will bring total disbursements under the Ukraine Plan in 2024 to €16.1 billion.

This follows the Commission's evaluation of Ukraine's second payment request, submitted in October. The assessment confirmed that Ukraine has successfully met the nine agreed reform indicators required for this payment. These reforms span key areas, including anti-corruption measures, improving the business environment, labour market enhancements, regional policy development, energy market reforms, and environmental protection initiatives.

The EU's €50 billion Ukraine Facility, spanning 2024-2027, provides a mix of grants and loans to support Ukraine in maintaining macro-financial stability, fostering short-term recovery, and advancing reconstruction and modernization efforts. These funds also aid in implementing structural reforms essential for Ukraine's progress on its path to EU membership. To date, €15.6 billion has been allocated across the Facility's three pillars, with €12.06 billion already disbursed based on Ukraine's progress in executing the Ukraine Plan. Quarterly payments under the Facility offer predictable financial support but are contingent on Ukraine meeting the pre-agreed benchmarks set out in the Ukraine Plan.

So what’s the Ukraine Plan? Basically, the Ukraine Plan outlines Ukraine's roadmap for recovery, modernization, and reconstruction. It focuses on reforms across key sectors, including energy, agriculture, transport, the green and digital transitions, human capital development, state-owned enterprise management, business environment improvement, public finance, and decentralization.