Ukraine will receive smaller amount from EU due to failure to meet three indicators - Head of Department of EU Delegation to Ukraine Huitfeldt
The European Union is currently monitoring Ukraine's progress under the Ukraine Facility plan, but reform of anti-corruption bodies must remain a priority.
This was stated by Henrik Huitfeldt, Head of the Department of Public Finance, Business Support, and Social Policy at the EU Delegation to Ukraine, according to Censor.NET with reference to RBC-Ukraine.
According to Huitfeldt, Ukraine has already received €19.6 billion out of a total of €38 billion under the Ukraine Facility. The financing is spread over four years, but the first payments were concentrated at the beginning of the program.
"If the August tranche is approved by the EU Council, the total payment will reach €23 billion," Huitfeldt said.
He also said that Ukraine submitted its application for the first quarter payment of €3 billion late in June. It is currently being reviewed by the European Commission and has been forwarded to the European Council.
Of the €4.5 billion allocated for the first quarter, Kyiv will receive a smaller amount due to the failure to meet three indicators. However, one of them — the ARMA law — has already been signed by the president, which will allow it to be included in future payments, the official said.
"Ukraine has up to 12 months after the end of the quarter to fulfill the indicators," Huitfeldt emphasized.
At the same time, approximately €600 million will be added to the payment for the second quarter.
"The logic behind the partial payment methodology is as follows: the total amount for the quarter (for example, 4.5 billion for the first quarter) is divided by the number of indicators (there were 16), with the amount doubling for laws. That is why, for example, one law is worth 600 million.
In the second quarter, the total volume is smaller—only 11 indicators, and the amount is less than €2 billion, with one law "costing" about €200 million.
The EU also expects progress on other indicators, particularly the High Anti-Corruption Court and the law on decentralization. Brussels understands the complexity of the political process.
A revision of the plan prior to the submission of the application for the third tranche is also being discussed. This will allow for changes in the schedule for the implementation of indicators to be taken into account and will enhance the effectiveness of investments, particularly in infrastructure.
According to Huitfeldt, the EU is concerned about recent developments surrounding anti-corruption bodies. "It is encouraging that key safeguards have been restored, but reforms in the areas of the rule of law and the fight against corruption must continue," he stressed.
Brussels sees delays in a number of indicators. However, the European Union recognizes that the program is being implemented under new conditions and requires flexibility from both sides.
