EU approves €50 billion aid package for Ukraine

Funding will take place through Ukraine Facility program

All 27 EU leaders have agreed on an additional €50 billion package of support for Ukraine within the EU budget. This was announced by President of the European Council Charles Michel.

“This locks in steadfast, long-term, predictable funding for Ukraine. EU is taking leadership & responsibility in support for Ukraine; we know what is at stake,» he wrote on social networking site X.

The vote on the Ukraine Facility in the European Council is a powerful signal of the partners’ continued support for Ukraine, said Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

«The next step will be to determine the final terms of the program within the framework of a triallogue between the European Council, the European Commission and the European Parliament. The final regulations should be adopted by the European Parliament during the plenary session scheduled for February 26-29,» she explained.

According to her, Ukraine expects to receive the first payment of €4.5 billion in March. The government is currently working on a transitional financing agreement with its European partners.

The First Vice Prime Minister added that the European Council’s decision also reflects a positive assessment of the preparation of the Ukraine Facility Plan. Once the regulations are approved by the European Parliament, they will take into account the relevant final conditions of the program. After the government approves the document, the Plan will be submitted to the European Commission.

The Ukraine Facility Plan envisages the implementation of structural reforms in the public sector and a number of economic reforms, as well as steps to develop priority sectors. Support under the EU’s Ukraine Facility program will be provided on a quarterly basis for meeting the criteria for implementing the reforms set out in the document.

The Ministry of Economy reminded that the Ukraine Facility envisages the provision of €50 billion to Ukraine over 2024-2027. Of this amount, €39 billion will be allocated to the state budget to strengthen macro-financial stability.

The program also provides for a special investment instrument to cover risks in priority sectors. Its volume will amount to €8 billion.

The budget of the Ukraine Facility provides for a separate area of technical support, including funds to cover interest on loans under the program, which will amount to €3 billion.

As GMK Center reported earlier, in November 2023, Ukraine became a full participant of the EU program Connecting Europe Facility (CEF) – the relevant agreement was ratified by the parliament. CEF functions within the framework of the «Paths of Solidarity» initiative, its implementation will contribute to the improvement of transport connections between Ukraine and the EU and the establishment of exports to European countries as a whole.