EU ambassadors agree on disbursement of €4.2bn tranche to Ukraine under Ukraine Facility
On Wednesday, July 24, EU ambassadors agreed to allocate €4.2 billion in EU financial assistance to Ukraine under the Ukraine Facility program.
This was announced by the Hungarian presidency of the EU Council, Censor.NET reports.
"Today, the ambassadors approved the first tranche under the Ukraine Plan of the Ukraine Facility Regulation, which paves the way for the transfer of almost €4.2 billion to support the recovery, reconstruction and modernization of Ukraine," the statement said.
The next step will be to approve this decision in accordance with the written procedure used for steps that do not require discussion.
What is known about the EU's Ukraine Facility program for Ukraine?
As a reminder, in February 2024, the European Parliament approved the regulations of the Ukraine Facility program. The EU's €50 billion support program for Ukraine will run from 2024 to 2027.
On June 6, the Verkhovna Rada ratified the Framework Agreement between Ukraine and the European Union on special mechanisms for the implementation of EU funding for Ukraine under the Ukraine Facility.
The Ukraine Facility will include three key components:
- direct support to the state budget (EUR 38.27 billion, including EUR 33 billion in loans and EUR 5.27 billion in grants)
- a special investment instrument to cover risks in priority sectors (EUR 6.97 billion);
- technical support in the implementation of reforms, as well as interest coverage on loans, including those received earlier (EUR 4.76 billion).
