On Monday, April 15, the European Commission approved the Plan for the Ukraine Facility and proposed to the EU Council to adopt the document. Now, EU member states have one month to adopt the proposed Commission Implementing Decision, which will pave the way for the full launch of the Ukraine Facility programme.
"For the first time, Ukraine has a comprehensive Economic Development Plan for the next 4 years. It aims to create conditions for economic development and European integration in many areas of the country's life. We are pleased to welcome the positive decision from the European Commission, which confirms our joint vision of the country's economic development on the path to the EU. After the adoption of the Implementing Decision by the EU Council, the European Commission will also be able to provide Ukraine with up to 1.89 billion euros in the form of advance funding for the Ukraine Facility. Furthermore, Ukraine will receive regular payments for the fulfillment of quarterly indicators outlined in the Plan throughout the 4-year duration of the programme," stated First Vice Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko.
In its decision, the European Commission assesses that the measures proposed in the Plan are in line with the objectives of the Ukraine Facility and have significant potential to enhance economic growth, support macroeconomic stability, improve fiscal situation, and further European integration of Ukraine.
As part of the transitional financing provided under the Ukraine Facility, Ukraine has already received 4.5 billion euros of financial assistance in March 2024. The next 1.5 billion euros from the state budget will be available in April after confirming the fulfillment of Plan indicators designated for transitional financing.
"The Ukrainian reform and investment strategy lays a strong foundation for the recovery of a more modern and prosperous Ukraine on its path to the EU. The positive assessment of the Plan by the European Commission opens the way for regular payments under the Ukraine Facility. With today's proposal, we once again demonstrate that Europe will stand with Ukraine as much as needed, and we are ready to provide such necessary financial support," noted President of the European Commission Ursula von der Leyen.
The evaluation of the Plan by the European Commission is based on the criteria established by the Ukraine Facility Regulation. In particular, the Commission assessed that the Plan purposefully and balancedly aligns with the objectives of the Ukraine Facility, challenges related to Ukraine's accession to the EU, as well as needs for recovery, reconstruction, and modernization.
The Plan identifies key reforms and investment directions that can contribute to sustainable economic growth and attract financing to enhance the country's growth potential in the medium and long term. It also includes a qualitative system of transparency, audit, and control, which will be strengthened within the envisaged reforms.
