The European Commission today approved the second scheduled payment of approximately €4.1 billion for Ukraine under the EU's Ukraine Facility initiative. This support mechanism aims to ensure macro-financial stability and the effective functioning of state institutions. The decision regarding the allocation of funds now needs to be approved by the EU Council. The funds are expected to be disbursed to the budget by the end of the year, bringing the total financing for Ukraine in 2024 to €16.1 billion.
"The EU remains unwavering in its support for Ukraine. At this critical moment, Ukraine continues to courageously defend its people from relentless Russian bombings, while advancing key reforms and measures for recovery and progress on its path to the EU. This has contributed to the positive assessment by the Commission for an additional payment of approximately €4.1 billion, and I believe the EU Council will quickly adopt the corresponding decision," said European Commission President Ursula von der Leyen.
After evaluating Ukraine’s second report submitted in October, the European Commission confirmed the fulfillment of all nine indicators of the Ukraine Facility Plan to receive the second tranche. These include reforms in legislation in the areas of anti-corruption, improving the business environment, the labor market, regional policy, the energy market, and environmental protection.
"Ukraine has once again demonstrated its ability to implement important reforms on the path to the EU. Timely and systematic support from the European Union will enable us to continue our uninterrupted work on economic recovery and adapting legislation to EU requirements. I am grateful to our partners for their trust and systematic support. Now we are focused on achieving the fourth-quarter indicators," said Ukraine's First Vice Prime Minister and Minister of Economy, Yulia Svyrydenko.
The European Commission positively assessed Ukraine’s fulfillment of nine indicators of the Ukraine Facility Plan for the third quarter, aimed at:
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Improving effectiveness in combating corruption. Ukraine has increased the staff of the Specialized Anti-Corruption Prosecutor’s Office (SAP), as well as made amendments to the Criminal and Criminal Procedural Codes to improve the effectiveness of anti-corruption measures. Specifically, the legal framework for plea agreements has been enhanced.
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Improving the regulatory environment. Ukraine adopted an Action Plan to reduce the burden on business by reviewing and removing duplicative regulations, deregulating business activities, and digitalizing administrative procedures.
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The updated State Regional Development Strategy for 2021-2027. Its goal is to strengthen social cohesion and improve the welfare and safety of Ukrainians through a more democratic, decentralized, and inclusive multi-level governance system.
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A new law on preventing, reducing, and controlling industrial pollution. This law is the first step toward implementing EU legislation and combating industrial pollution.
After the European Commission positively assessed Ukraine’s fulfillment of the nine indicators of the Ukraine Facility Plan for the third quarter of 2024, the report is forwarded to the EU Council for approval of the Implementation Decision. Following this, the tranche of approximately €4.1 billion will be directed to Ukraine's state budget.
In total, in the first three quarters of 2024, Ukraine has fulfilled 25 indicators of the Ukraine Facility Plan. By the end of the year, 11 indicators remain to be completed, with Ukraine submitting a report on their fulfillment to the European Commission at the beginning of 2025.
Reference
According to the Ukraine Plan, the Ministry of Economy is the national coordinator of the Ukraine Facility. The Ministry ensures the organization and monitoring of the implementation of the Plan and the preparation of quarterly reporting documents for the European Commission.
More information about the Ukraine Facility implementation plan and the status of indicators can be found here — https://www.ukrainefacility.me.gov.ua/
