The EU's €50 billion Ukraine Facility program to help Ukraine will include €33 billion in loans and €17 billion in non-repayable support, and also includes possible profits from frozen Russian assets. There are prerequisites for Ukraine to receive support under the program. And if necessary, in two years' time, the European Council may propose to the European Commission its revision. This is stated in the official conclusions of the EU summit on February 1, UNN reports.
Details
The European Council, as stated in the conclusions, "the need to ensure, together with partners, stable, predictable and sustainable financial support for Ukraine for the period 2024-2027." "To contribute to the recovery, reconstruction and modernisation of the country, foster social cohesion and progressive integration into the Union, with a view to possible future Union membership, a Ukraine Facility for the period 2024-2027 will be set up," the EU leaders said.
For the period of 2024-2027, the total resources provided through the instrument will reportedly not exceed EUR 50 billion, of which:
1) EUR 33 billion in the form of loans guaranteed by extending until 2027 the existing Union budget guarantee, over and above the ceilings, for financial assistance to Ukraine available until the end of 2027.
2) EUR 17 billion in the form of non-repayable support, under a new thematic instrument the Ukraine Reserve, set up over and above the ceilings of the MFF 2021-27. "Potential revenues could be generated under the relevant Union legal acts, concerning the use of extraordinary revenues held by private entities stemming directly from the immobilised Central Bank of Russia assets," the conclusions state.
As stated, "in order to optimise the use of the available amounts, unused commitment and payment appropriations under this instrument will be automatically carried over to the following year." The portion of the annual amount stemming from the previous year will be drawn on first.
"The European Council stresses the need to foster Ukraine’s ownership of its recovery and reconstruction efforts by means of a Plan to be prepared by the Ukrainian Government that will set out the reform and investment agenda of Ukraine on its path towards EU accession. The widest possible participation in the overall Ukraine recovery and reconstruction effort from donors outside the European Union will be strongly encouraged even before the adoption of the Plan," the conclusions say.
"A precondition for the support for Ukraine under the Facility shall be that Ukraine continues to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and to guarantee respect for human rights, including the rights of persons belonging to minorities. In implementing the Facility, the Commission and Ukraine shall take all the appropriate measures to protect the financial interests of the Union, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities," the EU leaders said in the summit conclusions.
It also states that the EU Council "will play a key role in the governance of the Ukraine Facility". "In this sense, a Council Implementing Decision shall be adopted by qualified majority for the adoption and amendments of the Ukraine Plan and for the approval and the suspension of payments based on the relevant assessments and proposals by the Commission," the conclusions say.
"On the basis of the Commission annual report on the implementation of the Ukraine Facility, the European Council will hold a debate each year on the implementation of the Facility with a view to providing guidance. If needed, in two years the European Council will invite the Commission to make a proposal for review in the context of the new MFF," the EU summit decision states.