The Council of the European Union has approved the first regular payment of nearly €4.2 billion to Ukraine under the EU’s Ukraine Facility, as announced in a press release on 6 August 2024.
According to the Council, Ukraine has satisfied the necessary conditions and reforms outlined in the Ukraine Plan, which covers areas such as public financial management, governance of state-owned enterprises, business environment, energy, and demining. Importantly, Kyiv has also made progress on “the fight against corruption and money laundering” and appointed a new head of its National Agency on Corruption Prevention, according to the official text of the decision.
The Ukraine Plan, submitted on 20 March 2024, outlines the country’s vision for reconstruction, modernization, and reforms as part of its EU accession process. The European Commission’s assessment, dated 15 April 2024, confirmed that the plan meets the criteria established by the Ukraine Facility Regulation.
If fully implemented, the Commission estimates that Ukraine’s GDP could increase by 6.2% by 2027 and 14.2% by 2040, potentially reducing the country’s debt by about 10% of GDP by 2033.
Prior to this payment, the Facility had already disbursed €6 billion in bridge financing and €1.89 billion in pre-financing. The current payment follows Ukraine’s request submitted on 9 July 2024, which the Council deemed to have satisfactorily fulfilled the envisaged reforms.
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