The European Parliament supported the regulation on launching a support program for Ukraine

In March 2024, the Ukrainian government is to approve a plan for the Ukraine Facility, and then it will be submitted to the European Commission. This is stated in a statement by the Ministry of Economics.

On February 27, the European Parliament supported the regulation on the launch of the Ukraine Facility, which defines the areas, forms and procedures for providing financial support to Ukraine.

The €50 billion EU program will run from 2024 to 2027.

«Approval of the Ukraine Facility program will strengthen our macroeconomic stability and bring Ukraine closer to EU membership. The Regulation contains the final terms of the program, including the Ukraine Facility Plan, which will be approved by the government in March and submitted to the European Commission,» said First Deputy Prime Minister – Minister of Economy Yuliya Svyridenko.

Ukraine Facility is divided into three key components:

  • the first – direct support of the state budget – €38.27 billion (€33 billion in the form of loans and €5.27 billion in the form of grants);
  • the second – a special investment instrument to cover risks in priority sectors – €6.97 billion;
  • the third – technical support in the implementation of reforms, as well as covering interest on loans, including previously received ones – €4.76 billion.

In addition, the program provides for a transitional financing mechanism that will allow Ukraine to receive support for the state budget before the full launch of the Ukraine Facility. The Ukrainian Cabinet of Ministers is currently working with its European partners to conclude a memorandum, which is expected to be signed in March.

After the Plan takes into account the final requirements of the Ukraine Facility regulations, the document will be approved by the government and submitted to the EC. The final approval of the Plan by the EU is expected in April, which will allow the mechanism to operate fully.

The Ukraine Facility Plan is the basis for providing budget support under the program. It envisages the implementation of structural reforms in the public sector, a number of economic reforms aimed at developing the business climate and entrepreneurship, as well as steps to develop priority sectors that can ensure rapid economic growth.

As the Ministry of Economy noted, budget support under the Ukraine Facility will be provided on a quarterly basis for the fulfillment of the criteria set out in the Plan for the implementation of the envisaged reforms.

As GMK Center reported earlier, the investment mechanism is part of the Ukraine Facility will promote engagement at least $30 billion of additional investments over the next four years through the provision of guarantees to international financial organizations, Yulia Svyridenko reported. The First Deputy Prime Minister noted that in 2024, Ukraine continues to improve the investment climate and implement reforms important for the effective operation of business.

Also, on February 1, all 27 leaders of the European Union countries agreed about an additional support package for Ukraine in the amount of €50 billion within the framework of the EU budget.