Yuriy Draganchuk Outlines Euro-Integration Prospects at URC through the Prism of Ukraine Facility

Yuriy Draganchuk, Deputy Minister of Finance of Ukraine for European Integration, took part in the panel discussion "The Ukraine Facility as a Bridge to EU Membership: Financial Architecture, Reform Conditionality and Structural Funds," held as part of the Ukraine Recovery Conference (URC).

"Support within the Ukraine Facility is one of the key instruments for maintaining the macro-financial stability of our country and financing critical state budget expenditures amid the full-scale war. Our capacity is proven by the recent receipt of another regular tranche from the EU amounting to EUR 2.8 billion, bringing the total funding under this instrument to over EUR 29.5 billion. The consistent implementation of the Ukraine Plan demonstrates our clear commitment to the reforms necessary for recovery and further European integration," Yuriy Draganchuk noted.

The event was also attended by Dariya Marchak, Deputy Minister of Economy, Environment and Agriculture of Ukraine; Jan Szyszko, Deputy Minister of Funds and Regional Policy of Poland; European Commission representatives Gert Jan Koopman, Director-General for Neighbourhood and Enlargement Negotiations (DG NEAR), and Anna Jarosz-Friis, Head of the Ukraine Service; Nadiia Petkova, EBRD Managing Director for Impact and Partnerships; and Marta Postuła, First Vice-President of the Management Board of Bank Gospodarstwa Krajowego (BGK).

During the session, the speakers focused in detail on the Euro-integration dimension of the programme. Specifically, Yuriy Draganchuk emphasised that the Ukraine Plan covers only a part of the Ministry of Finance's broader public financial management (PFM) reform agenda aimed at harmonising financial governance. Significant milestones on this path include the adoption of the PFM Strategy for 2026–2029, developed together with the EU, SIGMA, the IMF, the World Bank and other key partners, as well as the approval of the National Programme for the Adaptation of Ukrainian Legislation to EU Law.

The Deputy Minister of Finance pointed out that the process of aligning our legislation with the EU acquis is ongoing on a daily basis. He also noted that the Ukraine Plan covers only a relatively limited part of our broader PFM reform agenda, and we are consistently striving to demonstrate relevant progress.

Among other key practical steps, Yuriy Draganchuk highlighted the drafting and submission to the Parliament of the draft new Customs Code that will be fully aligned with the EU Customs Code. Ongoing transformations also cover budgetary and tax policies, financial control, and the further digitalisation of processes.

Special attention was paid to preparing Ukraine for future access to EU Structural Funds after attaining full membership. It was noted that through the implementation of investment indicators under the Ukraine Facility, regions are already gaining practical experience in managing large-scale investment programmes. At the same time, the Ministry of Finance has been implementing the Public Investment Management (PIM) reform for the third consecutive year. An important element of preparing the system for future access to EU Structural Funds is the ongoing work on reforming and strengthening the institutional capacity of our National Development Institution to ensure its full operational readiness in line with European standards and requirements.

Following the discussion, the participants shared the view that the Ukraine Facility is a unique instrument that not only ensures Ukraine's economic resilience but also acts as a real accelerator for structural reforms on the path to full membership in the European Union.

As a reminder, the Ukraine Facility is an unprecedented support programme for Ukraine from the European Union totaling around EUR 50 billion for the period 2024–2027. The funding is aimed at ensuring macroeconomic stability, recovery and modernisation of the country, as well as accelerating its European integration through the implementation of clearly defined reforms.