Sergii Marchenko: Ukraine Facility will Contribute to the Transition to a Green, Digital and Inclusive Economy

Minister of Finance of Ukraine Sergii Marchenko met with Director-General of DG Neighborhood and Enlargement Negotiations (NEAR) Gert Jan Koopman.

The meeting was also attended by Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk, Deputy Minister of Finance of Ukraine Olga Zykova and Government Commissioner for Public Debt Management Yuriy Butsa. On behalf of representatives of the European Commission, the meeting was attended by Director for Ukraine Service in DG NEAR Anna Jarosz-Friis, Deputy Director and Head of the Economic and Sectoral Policies Unit in the Ukraine Service in DG NEAR Marlene Rosemarie Madsen and Head of Cooperation at the EU Delegation to Ukraine Frederik Coene.

During the meeting, the Minister of Finance of Ukraine thanked the EU for the comprehensive support of Ukraine and the provision of Macro-Financial Assistance:

“I am grateful to the European Union for the Macro-Financial Assistance program with a total funding of EUR 18 billion. In 2023, the EU is Ukraine's largest donor. Ukraine receives funding in a timely and rhythmic manner  every month, which is an important factor for the Government of Ukraine to ensure priority expenditures of the state budget and continue to maintain macroeconomic stability in Ukraine during a full-scale war.”

The parties discussed the preparation and implementation of the Ukraine Facility from the EU. During the Ukraine Recovery Conference (URC-2023), representatives of the European Commission announced the creation of a special financial instrument for Ukraine, which provides for funding of up to EUR 50 billion for a four-year period.

“The financial instrument for Ukraine will be directed to support the macro-financial stability of Ukraine, will contribute to the recovery and reconstruction, as well as the modernization of our country during the implementation of key reforms on the way to the EU accession. It will support the transition to a green, digital and inclusive economy that will gradually align with EU rules and standards,” said Sergii Marchenko.

The EU's financial instrument for Ukraine (Ukraine Facility) will include three main components:

• Financial assistance in the form of grants and loans. This will ensure stable and predictable funding to support Ukraine's financial stability, while providing a strong foundation to protect the EU budget;

• A special investment structure designed to attract and mobilize public and private investments for the recovery of Ukraine. This will complement the already existing support instruments for Ukraine, such as budget guarantees, financial instruments or blended financing;

• Technical assistance. In particular, expert support for reforms, support for municipalities, civil society and other forms of bilateral assistance. Within this component, it will also be possible to support other initiatives aimed at responding to russian aggression against Ukraine, including ensuring compliance with international law regarding crimes committed by russia on the territory of Ukraine.

“For the implementation of the Ukraine Facility, the Government of Ukraine must prepare a Plan for the recovery, reconstruction and modernization of the country, as well as detail the reforms and investments that will need to be implemented as part of the EU accession process. Significant emphasis will be placed on public administration reform, good governance, the rule of law, the fight against corruption, and effective financial management,” said Sergii Marchenko.