Ukraine will soon receive over €4.2 billion in funds after the Council greenlighted the second regular payment of grants and loans under the EU's Ukraine Facility, to support Ukraine's macro-financial stability and the functioning of its public administration.

In a decision adopted today, the Council concluded that Ukraine had satisfied the necessary conditions and reforms envisaged in the Ukraine Plan for receiving the funds, which will be disbursed from the Ukraine Facility. The Council also stressed the importance of allocating the money as soon as possible, given the difficult fiscal situation in Ukraine.

The Ukraine Plan sets out Ukraine’s intentions regarding the recovery, reconstruction and modernisation of the country and the reforms it plans to undertake as part of its EU accession process in the next four years.

In May 2024 the Council concluded that the Ukraine Plan fulfilled the preconditions for Ukraine to receive up to €50 billion in support under the Ukraine Facility, and in August the first EU instalment was disbursed.

Background

The Ukraine Facility, which entered into force on 1 March 2024, foresees up to €50 billion of stable financing, in grants and loans, to support Ukraine's recovery, reconstruction, and modernisation for the period 2024 to 2027. Of this, up to €32 billion is indicatively earmarked to support reforms and investments set out in the Ukraine Plan, whereby disbursements will be conditioned on the delivery of identified indicators. Since its entry into force, the Ukraine Facility has already disbursed €6 billion by way of bridge financing, €1.89 billion in pre-financing, and a first instalment of nearly €4,2 billion, of which €1,5 billion in the form of non-repayable financial support and over €2,6 billion in the form of loans.

Following the Commission’s assessment of the payment request submitted by Ukraine on 10 October 2024, the Council concluded that Ukraine has satisfactorily fulfilled reforms envisaged in the Ukraine Plan. These reforms cover the fight against corruption and money laundering, the Criminal Code and Criminal Procedure Code, business environment, energy and the green transition and environmental protection. Today’s implementing decision authorises the second of these payments to take place.

• Council gives green light to first payment of nearly €4.2 billion under the Ukraine Facility (press release, 6 August 2024)
• Ukraine Plan: Council greenlights regular payments under the Ukraine Facility (press release, 14 May 2024)
• Ukraine Facility: Council and Parliament agree on new support mechanism for Ukraine (press release, 6 February 2024)
• EU solidarity with Ukraine (background information)
• The Ukraine Facility (background information)