The European Union Council has approved the allocation of €4.2 billion in macro-financial aid to Ukraine as part of the Ukraine Facility financial instrument.
The funds will be directed towards priority social and humanitarian expenses in the state budget.
“I am grateful to the European Union for the positive assessment of the work done by the Government and for understanding Ukraine's needs. The EU has been the largest donor of external financing since February 24, 2022. International assistance plays a crucial role in ensuring budgetary liquidity and maintaining macro-financial stability amid uncertainty. The Government is committed to cooperating with partners and implementing measures effectively and as quickly as possible,” commented Ukraine's Minister of Finance, Serhiy Marchenko.
Ukraine has fulfilled all measures outlined in the Ukraine Plan by the end of the second quarter, thereby enabling the receipt of the relevant tranche under the instrument.
The Ukraine Plan included nine indicators to be achieved by the end of June 2024. Specifically, the Ministry of Finance was responsible for implementing several measures in the budgetary sphere, public investment management, and public administration.
Under the Ukraine Facility instrument, €7.9 billion has already been allocated to Ukraine's state budget. It is expected that EU budgetary support will reach €16 billion in 2024.
Reference
The Ministry of Finance fulfilled three conditions under the Ukraine Plan:
- Approval of the Budget Declaration for 2025–2027;
- Approval of the action plan for implementing the Roadmap for Public Investment Management Reform;
- Approval of the Long-term National Strategic Plan for the Digital Development, Digital Transformation, and Digitalization of the State Customs Service.
