The European Parliament supported the initiative, which provides for the creation of the Financial Instrument for Ukraine ("Ukraine Facility") — a new financial instrument for Ukraine in the amount of up to €50 billion.
Prime Minister of Ukraine Denys Shmyhal informed about this on October 3.
Ukraine expects to receive €18 billion already in 2024. These funds will be used to finance the budget deficit, social benefits, pensions and salaries for doctors and teachers.
Ukraine is currently working with the European Commission to implement the necessary changes that will open access to the program. In particular, it is digitalization, integration into European markets, development of human capital, energy independence.
What is "Ukraine Facility"?
This is a program to provide financial support to Ukraine during 2024-2027. It should satisfy both the short-term needs of the state and recovery, as well as the medium-term reconstruction and modernization of Ukraine. The financial instrument for Ukraine ("Ukraine Facility") from the EU contains three main components:
- financial support in the form of grants and loans;
- a special investment structure designed to attract public and private investments for the restoration of Ukraine;
- technical assistance (expert support for reforms, civil society support and other forms of bilateral assistance).
For the implementation of the "Ukraine Facility", the government of Ukraine must prepare a Plan for the recovery, reconstruction and modernization of the country, as well as detail the reforms and investments that must be implemented as part of the EU accession process. Significant emphasis will be placed on public administration reform, good governance, the rule of law, the fight against corruption, and effective financial management.
- In order to expand the EU budget by this €50 billion for Ukraine, the EU agreed to unblock money for Hungary (€13 billion, which was blocked due to problems with the rule of law). The creation of the Ukraine Facility requires the votes of all EU members, and Hungary refused to support anything during the period of the funds freeze.