The European Parliament supported the initiative of the European Commission to create a special fund to help Ukraine in the amount of up to €50 billion. 512 MPs voted pro, 45 — against, and 63 — abstained.
In the "Ukraine Facility", money is pledged for the years 2024-2027 in the form of grants and loans to support the recovery, reconstruction and modernization of Ukraine.
The project contains two important points: strengthening accountability and the use of Russian frozen assets. These demands were actively supported by other deputies during the debate preceding the vote on October 16.
The European Parliament requires that the Ukraine Aid Fund be based on a consistent reconstruction plan (also called the "Ukraine Plan"). It must be prepared by the Ukrainian government after consultations with representatives of civil society and clearly meet the criteria for joining the EU. Then the plan must be approved by the Verkhovna Rada (the Ukrainian Parliament) and submitted to the European Union for approval. According to the European Commissioner for the budget Johannes Hahn, Brussels is already assisting Kyiv in the preparation of this plan.
Ukraineʼs plan should include a list of reforms and attracting investments, as well as qualitative and quantitative indicators demonstrating the implementation of these plans.
The document voted by the European Parliament contains a strong recommendation to use the frozen Russian assets for the recovery of Ukraine, and by integrating them into the Aid Fund in the form of grants.
That is, any assets, together with the income from them, confiscated due to the invasion of Ukraine, and income received from the management of assets of the Russian Federation, frozen in accordance with EU sanctions, can be used as grants to Ukraine, according to the members of the European Parliament.
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).