European Commission endorses Ukraine Plan, paving the way for the disbursement of funds under the EU's Ukraine Facility

Today, the European Commission has endorsed the Ukraine Plan for 2024-2027 under the EU's Ukraine Facility.

This is an important step that paves the way for regular and predictable EU support for Ukraine. The total amount of funds provided by the Ukraine Facility is EUR 50 billion. Of these, EUR 38.27 billion will be allocated for budget support, EUR 6.97 billion for the investment fund, and EUR 4.76 billion for technical and administrative support.

In March 2024, the Plan was approved by the Government of Ukraine. This is a specific list of structural reforms and measures that will contribute to the sustainable development of Ukraine's economy, green transition, digital transformation and European integration. 

"EU funding will help Ukraine meet its urgent budgetary needs in the social area, as well as implement recovery and reconstruction. Cooperation with European institutions plays an extremely important role in ensuring macro-financial stability and serves as a foundation for further economic growth. The implementation of structural reforms within the framework of development programs brings Ukraine closer to EU integration," said Minister of Finance of Ukraine Sergii Marchenko.  

According to the European Commission, the Ukraine Plan identifies key reforms and investments that will boost sustainable economic growth and attract investment to enhance the country's growth potential in the medium and long term. The plan also provides a framework for implementing effective recovery, reconstruction and modernization of Ukraine. 

The European Commission's assessment also found that the Plan offers adequate mechanisms to protect the EU's financial interests by ensuring effective implementation, monitoring and reporting on the Plan.  

Following a positive assessment by the European Commission, the Council of the EU will have to adopt the final approval of the Ukraine Plan. After the adoption of the Plan, it is expected that the State Budget will receive EUR 1.9 billion in pre-financing. The rest of the budget support will be disbursed on a quarterly basis after the performance of the indicators set out in the Ukraine Plan and a positive assessment by the EU Party of the implementation of such measures. 

The Ministry of Finance of Ukraine is responsible for three areas of the Plan: public finance management, anti-money laundering and financial markets. 

The State Budget of Ukraine has already received the first tranche of EUR 4.5 billion in Bridge financing under the EU's Ukraine Facility instrument. The Bridge financing mechanism allows to meet the urgent budget needs until the final approval of the Ukraine Plan.