The European Parliament approved the Ukraine Facility with EUR 39 billion of budget support for 2024-2027

Today, on 27 February, the European Parliament, during its plenary session, approved a decision on the Ukraine Facility - an instrument which provides an opportunity for Ukraine to receive EU financial and technical assistance totalling EUR 50 billion in 2024-2027.

In accordance with the EU's institutional procedures, the decision must also be adopted by the Council of the European Union before it can come into force.

The Ukraine Facility requires the Government of Ukraine, together with the European Commission, to prepare a Ukraine Plan, which should include a list of reforms that Ukraine plans to implement during the term of the Facility. The Ukraine Plan will be the basis for attracting the concessional loans and grants to finance the expenditures of the State Budget of Ukraine in the amount of EUR 39 billion. 

"Since the beginning of russia's full-scale invasion, the EU has provided Ukraine with around EUR 26 billion in direct budget support. This is an exceptional assistance and a demonstration of solidarity with the Ukrainian people in a challenging time. In the context of uncertainty regarding external financing in the first months of this year, the support of the EU institutions for the establishment of the Ukraine Facility is an important decision to maintain the stability of the country's financial system. We expect to receive the first tranche under the Ukraine Facility in the amount of EUR 4.5 billion in March. The Government of Ukraine is committed to implementing the reforms agreed with the EU to mobilise consistent and predictable funding," said Minister of Finance of Ukraine Sergii Marchenko. 

The Ukraine Plan will become a roadmap for Ukraine's further path to EU membership and economic recovery. 

Thus, the Plan will include 15 key areas of reform, including areas within the direct competence of the Ministry of Finance: public finance management, anti-money laundering, and financial markets. 

On 1 February 2024, the leaders of the EU member states politically supported the launch of the Ukraine Facility at a meeting of the European Council.