The main purpose of the third tranche, worth EUR 3.5 billion, under the Ukraine Facility, approved by the EU Council today, is to support macro-financial stability. In order to secure this money, Ukraine has taken 13 steps in reforms and transformations.
That’s according to the European Council press service, Ukrinform reports.
“The Council concluded today that Ukraine had satisfied the necessary conditions laid down in the Ukraine Plan in order to receive a third disbursement from the Ukraine Facility. Ukraine successfully demonstrated that it had implemented 13 different steps. These include, among others, passing reforms to increase the use of renewable energy; increasing the autonomy of the energy regulator; simplifying border-crossing procedures in line with EU standards; adopting a strategy for agriculture and rural development (including the removal of land mines from agricultural areas); and continuing work on listing its strategic and critical raw materials,” the statement said.
As noted, Ukraine will receive about EUR 3.5 billion soon, in the form of non-repayable grants, as well as loans under the Ukraine Facility. The main objective of the Facility is to sustain Ukraine’s macro-financial stability, its recovery, reconstruction, and modernization. With the third tranche coming in, Ukraine will have received about EUR 20 billion under the Ukraine Facility since its inception a year ago.
An integral part of the Ukraine Facility is the Ukraine Plan agreed with the European side, which incorporated Ukraine’s intentions for the recovery, reconstruction, and modernization, and also determined the timeframe for implementing reforms on its path toward EU membership.
As reported, the EU launched the Ukraine Facility in the EU’s multiannual budget for 2024-2027 from March 1, 2024, which provided Ukraine with stable funding in grants and loans for a total of EUR 50 billion.
Of this, up to EUR 32 billion is indicatively earmarked to support the reforms and investments set out in the Ukraine Plan, whereby disbursements are conditional upon Ukraine fulfilling a number pf pre-established conditions. Since its entry into force, the Ukraine Facility has already disbursed EUR 6 billion by way of bridge financing, EUR 1.89 billion in pre-financing, and two instalments of approximately EUR 4.2 and EUR 4.1 billion.
Today, Prime Minister of Ukraine Denys Shmyhal thanked European partners for the assistance provided, and announced that this significant financial inflow will help strengthen the country’s resilience and support budget expenditures critical for the population.
Source: Ukraine completes 13 steps to get EUR 3.5B tranche from EU
