The European Commission approved the Plan of Ukraine, which paves the way for payments from the EUR 50 billion fund

Today, the European Commission has approved the Ukraine Plan for 2024-2027 under the EU's Ukraine Facility. As noted by the Ministry of Finance, this is an important step that paves the way for regular and predictable support for Ukraine from the EU, UNN reports.

Funding from the EU will help Ukraine meet its urgent budgetary needs in the social sphere, as well as implement recovery and reconstruction. Cooperation with European institutions plays an extremely important role in ensuring macro-financial stability and serves as a foundation for further economic growth. And the implementation of structural reforms within the framework of development programs brings Ukraine closer to EU integration 

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According to the European Commission, the Ukraine Plan identifies key reforms and investments that will promote sustainable economic growth and attract investment to enhance the country's growth potential in the medium and long term. The Plan also provides a framework for implementing effective recovery, reconstruction and modernization of Ukraine. 

The European Commission's assessment also showed that the Plan offers adequate mechanisms to protect the EU's financial interests by ensuring effective implementation, monitoring and reporting on the implementation of the Plan and the use of funds.  

Following a positive assessment by the European Commission, the Council of the EU will have to make a decision on the final approval of Ukraine's plan. After the adoption of the Plan, it is expected that the state budget will receive EUR 1.9 billion in unconditional funding. The rest of the budget support will be disbursed on a quarterly basis after the fulfillment of the indicators provided for in the Ukraine Plan and a positive assessment of the implementation of such measures by the EU Party. 

The Ministry of Finance of Ukraine is responsible for three areas of the Plan: public financial management, anti-money laundering and financial markets. 

The State Budget of Ukraine has already received the first tranche of EUR 4.5 billion in transitional financing under the EU's Ukraine Facility financial instrument. The transitional financing mechanism allows to meet the urgent budget needs until the final approval of the Ukraine Facility Plan.

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The total amount of funds provided by the Ukraine Facility is EUR 50 billion. Of this amount, EUR 38.27 billion will be allocated for budget support, EUR 6.97 billion for the investment fund, and EUR  4.76 billion for technical and administrative support.

The Plan was approved by the Government of Ukraine in March 2024. This is a specific list of structural reforms and measures that will contribute to the sustainable development of Ukraine's economy, the "green" transition, digital transformation and European integration.