EU ambassadors approve another financial aid to Ukraine

EU ambassadors have agreed to provide Kyiv with financial assistance amounting to 4.2 billion euros ($4.5 billion).

This decision is set to be formally approved by the European Council, Caliber.Az reports, citing the statement of the Hungarian Presidency of the Council of the EU 2024.

“Today, Ambassadors adopted the first instalment under the Ukraine Plan of the Ukraine Facility Regulation, paving the way for the transfer of nearly 4.2 billion euros to support Ukraine's recovery, reconstruction, and modernisation. As a next step, the European Council will move ahead with a written procedure,” the message says.

In February 2024, the European Parliament approved the regulations of the Ukraine Facility program. The EU's 50-billion-euro-support program ($54 billion) for Ukraine will run from 2024 to 2027. On June 6, the Verkhovna Rada ratified the Framework Agreement between Ukraine and the European Union on special mechanisms for the implementation of EU funding for Ukraine under the Ukraine Facility.

The Ukraine Facility will include three key components:

direct support to the state budget (38.27 billion euros or $41.5 billion, including 33 billion euros or $35.8 billion in loans and 5.27 billion euros or $5.7 billion in grants)

a special investment instrument to cover risks in priority sectors (6.97 billion euros or $7.5 billion);

technical support in the implementation of reforms, as well as interest coverage on loans, including those received earlier (4.76 billion euros or $5.2 billion).