Brussels boosts Ukraine with €4.1 billion financial aid As Part of Ukraine Facility

The Council of the European Union has approved a second round of financial aid for Ukraine, amounting to approximately €4.1 billion, under the EU's Ukraine Facility.

This funding, comprising grants and loans, aims to support Ukraine's macro-financial stability and ensure the smooth operation of its public administration, Caliber.Az reports, citing foreign media.

The decision comes after the Council determined that Ukraine has met the necessary conditions and reforms outlined in its Ukraine Plan. The Council emphasized the urgency of allocating these funds swiftly, given Ukraine's challenging fiscal circumstances.

The Ukraine Plan details Ukraine's strategic objectives for recovery, reconstruction, modernization, and the reforms it intends to implement as part of its accession to the European Union over the next four years.

Back in May 2024, the Council confirmed that the Ukraine Plan met the preconditions to access up to €50 billion in EU support through the Ukraine Facility. In August, the first instalment of this aid—totalling nearly €4.2 billion—was disbursed, with €1.5 billion provided as non-repayable support and €2.6 billion in loans.

To recall, the Ukraine Facility, which became operational on March 1, 2024, is a financial support programme of up to €50 billion in grants and loans, set to assist Ukraine's recovery, reconstruction, and modernization from 2024 to 2027. Of this total, €32 billion is earmarked to support reforms and investments identified in the Ukraine Plan, with disbursements contingent on the achievement of specific indicators.

Since the Facility's launch, €6 billion has already been disbursed in bridge financing, €1.89 billion in pre-financing, and the first instalment of nearly €4.2 billion.

Following an assessment by the European Commission of Ukraine's payment request, submitted on October 10, 2024, the Council confirmed that Ukraine has successfully implemented the reforms specified in the Ukraine Plan. 

These reforms address key areas such as combating corruption and money laundering, reforms to the Criminal Code and Criminal Procedure Code, business environment improvements, energy development, the green transition, and environmental protection.

This latest decision authorizes the second payment under the Ukraine Facility to proceed.

By Aghakazim Guliyev