Ukraine and the European Union have signed an agreement for transitional financing for Ukraine, totaling 6 billion euros.
According to the Ministry of Finance of Ukraine, the first payment of 4.5 billion euros is expected to arrive in the Ukrainian State Budget in March.
The remaining 1.5 billion euros will be available to Ukraine in April 2024 after an assessment by the European Commission of the indicators achieved.
The transitional financing mechanism involves Ukraine implementing five indicators in areas such as public finance management, anti-corruption efforts, and business environment development. Once Ukraine's Plan for the Ukraine Facility is approved, it is expected that 1.9 billion euros of unconditional funding will be directed to the state budget.
The rest of the budget support will be provided to Ukraine quarterly after the completion of the indicators outlined in the Plan for Ukraine.
Minister of Economy Yulia Svyrydenko noted,
"Together with our European partners, we are finalizing the preparation of the Plan for the Ukraine Facility and preparing for the full launch of the program. We have made significant progress. The signing of the Agreement will allow us to start financing even before the official approval of the Plan and will provide 6 billion euros to cover the current needs of the state budget during March and April of this year."
