The Council of the European Union has informed that the Recovery and Reform Plan of Ukraine approved today allows to start disbursements from the fund of 50 billion euros in the form of grants and loans for Ukraine, UNN reports.
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"Today, the EU Council adopted an implementing decision that positively assesses the Ukraine Plan, which sets out the intentions of the Ukrainian government to restore, reconstruct and modernize the country, as well as the reforms it plans to implement as part of its EU accession process over the next four years," the European institution said.
In particular, the EU Council, as noted, believes that "thanks to this plan, Ukraine fulfills the prerequisites for support under the Ukraine Facility (up to 50 billion euros), and regular disbursements can now begin to flow.
"Payments to Ukraine will be made by the EU subject to the implementation of the agreed reforms and investments in the form of qualitative and quantitative steps set out in the annex to the Council Implementing Decision. The planned reforms and investments have a significant potential to accelerate economic growth, maintain macroeconomic stability, improve the financial situation and support Ukraine's further integration with the EU," the European institution said.
Today's decision, as noted, "contains additional information on the measures and timetable for its implementation, including the envisaged schedule of support and the schedule of its disbursement." "The final qualitative and quantitative milestones are to be completed by the end of 2027," the statement said.
In addition, financial support under the Ukraine Plan is reportedly "conditional on Ukraine's continued support for and respect for effective democratic mechanisms, including a multiparty parliamentary system and the rule of law, and on the guarantee of human rights." "Financial support is also conditional on strengthening the rule of law, maintaining the independence of the judiciary, strengthening public administration reform and the fight against corruption, including high-level corruption and money laundering," the European institution said.
"Today's decision will allow the European Commission to disburse up to €1.89 billion in pre-financing until regular disbursements linked to the implementation of reforms and investment performance under the Ukraine Plan begin," the EU Council said.
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The Ukraine Facility , which became operational on 1 March 2024, provides up to EUR 50 billion of stable financing in the form of grants and loans to support the recovery, reconstruction and modernization of Ukraine for the period 2024-2027. Of this amount, up to €32 billion is tentatively earmarked to support the reforms and investments outlined in the Ukraine Plan, under which disbursements will be conditional on the achievement of certain benchmarks. Since its entry into force, the Ukraine Facility has already disbursed €6 billion in transitional funding upon fulfillment of agreed policy conditions.
In the Ukraine Plan, submitted on March 20, 2024, Ukraine outlined its vision of reconstruction, modernization, and reforms that it intends to implement as part of the EU accession process. The plan emphasizes structural reforms and investments in sectors with the highest growth potential. It addresses the improvement of public administration, emphasizing good governance, respect for the rule of law, and the fight against corruption and fraud.
In its assessment of April 15, 2024, the European Commission confirmed that Ukraine's Plan meets the criteria set out in the financing regulation for Ukraine.
If all the proposed reforms and investments are fully implemented, it is estimated that Ukraine's GDP could grow by 6.2% by 2027 and 14.2% by 2040, and this could lead to a reduction in debt by about 10 percentage points of GDP by 2033, the European institution said.