A historic decision: European Parliament and Council approve the establishment of a EUR 50 billion Ukraine Fund

The European Parliament and the Council of the European Union have agreed to create a 50 billion euros Ukrainian Fund in the EU budget for the next four years. This was reported by UNN , citing a report from the European Council website.

Details

The European Parliament and the Council of the European Union have reached a preliminary agreement on the creation of a new single dedicated instrument to support the recovery, reconstruction and modernization of Ukraine, namely the creation of a €50 billion Ukraine Fund.

The total budget of the Fund for Ukraine will amount to 50 billion euros, of which 33 billion euros will be allocated in the form of loans and 17 billion euros in the form of grants.

The EU stands ready to support Ukraine for as long as it takes. The Mechanism for Ukraine will allow us to provide consistent and predictable support to Ukraine to help its people rebuild their country in the face of the unprecedented challenges posed by Russia's war of aggression. At the same time, this support will help Ukraine advance the reforms and modernization efforts it needs to move forward on its path to future EU membership 

This financial support mechanism for Ukraine will be structured in three components. The first component involves the preparation of a "Ukraine Plan" by the government, which is linked to EU financial support in the form of grants and loans. The second component includes a Framework Investment Program with budgetary guarantees and a combination of grants and loans from various sources. The third pillar covers EU accession assistance and other support measures for legislative harmonization and structural reforms.

Add

This mechanism will combine the EU's budgetary sources of support and provide Ukraine with coordinated, predictable and flexible assistance for the period 2024-2027.