Today, the European Commission approved the second scheduled payment to Ukraine under the EU’s Ukraine Facility initiative, amounting to approximately €4.1 billion. This mechanism supports Ukraine in maintaining macro-financial stability and ensuring the effective functioning of state institutions. The final decision on the disbursement now rests with the EU Council, and the funds are expected to be transferred to Ukraine’s budget by the end of the year, bringing the total financing for 2024 to €16.1 billion.
“The EU remains unwavering in its support for Ukraine. At this critical moment, Ukraine continues to bravely defend its people against relentless Russian bombardments while advancing essential reforms and recovery measures on its path toward EU membership. This has contributed to the Commission’s positive assessment of the additional €4.1 billion payment, and I trust the EU Council will promptly approve the decision,” said European Commission President Ursula von der Leyen.
Following its assessment of Ukraine’s second quarterly report submitted in October, the European Commission confirmed that all nine indicators of the Ukraine Facility Plan necessary for the second tranche had been met. These indicators include legislative reforms in areas such as anti-corruption, business environment improvement, labour market development, regional policy, energy market reform, and environmental protection.
“Once again, Ukraine has demonstrated its capability to implement critical reforms on its EU path. Timely and systematic support from the European Union enables us to continue rebuilding the economy and aligning our legislation with EU standards. I am grateful to our partners for their trust and consistent support. Our current focus is on achieving the fourth-quarter indicators,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
The European Commission positively assessed Ukraine’s progress on nine third-quarter indicators of the Ukraine Plan, focusing on:
- Strengthening anti-corruption efforts. Ukraine expanded the staff of the Specialised Anti-Corruption Prosecutor's Office (SAP) and amended the Criminal and Criminal Procedure Codes to enhance the effectiveness of anti-corruption measures, including improvements to the legal framework for plea agreements.
- Improving the regulatory environment. A comprehensive Action Plan was adopted by Ukraine to reduce regulatory burdens, streamline overlapping regulations, deregulate economic activities, and digitalise administrative procedures.
- Updated State Strategy for Regional Development (2021-2027). It aims to strengthen social cohesion and improve the well-being and security of Ukrainians through a more democratic, decentralised and inclusive multi-level governance system.
- New law on industrial pollution. This law is the first step towards implementing relevant EU legislation and combating industrial pollution.
After the European Commission has positively assessed Ukraine's implementation of the nine indicators of the Ukraine Plan for Ukraine Facility for the third quarter of 2024, the report will be submitted to the EU Council for adoption of an Implementing Decision. After that, a tranche of about €4.1 billion will be transferred to the state budget of Ukraine.
In total, in the first three quarters of 2024, Ukraine fulfilled 25 indicators of the Ukraine Plan for Ukraine Facility. By the end of the year, 11 indicators remain to be fulfilled, and a report on their fulfilment will be submitted to the European Commission in early 2025.
Background
Under the Ukraine Plan, the Ministry of Economy of Ukraine acts as the national coordinator of the Ukraine Facility. The Ministry is responsible for organising and monitoring the implementation of the Plan and preparing quarterly reports to the European Commission.
For more information on the Ukraine Plan for Ukraine Facility and the status of implementation of the indicators, please visit https://www.ukrainefacility.me.gov.ua/