€50 billion for Ukraine: Ambassador to EU explains how money will be controlled

Mechanisms for controlling the expenditures of the 50 billion euro Ukrainian Fund were envisaged from the very beginning, with the need for annual reporting to the European Commission and the possibility of revising the funding parameters in two years if necessary.

This was stated by the representative of Ukraine to the EU Vsevolod Chentsov at an online briefing at the Media Center Ukraine, reported Ukrinform.

"From the very beginning, these control mechanisms were envisaged [for the expenditures of the 50 billion euros Ukrainian Fund]. In fact, there will be several levels of this control - there will be an audit, which is standard for this kind of instrument, despite the fact that it is a new instrument. This will be a joint effort between the relevant EU structures and our supervisory authorities. Parliamentary control of the entire process is also envisaged - this is precisely why a plan of economic reforms and recovery is being developed, which will include relevant indicators," Chentsov said.

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According to him, the new agreement includes "the need for the European Commission to report to the European Council annually and the possibility of revising the funding parameters in two years if necessary."

As reported, at a meeting of the European Council, the heads of state and government of all 27 EU countries decided to create a so-called Ukraine Fund in the amount of EUR 50 billion within the EU's multi-annual budget, which will be used to provide immediate financial support to Ukraine, its recovery and reconstruction over the next four years.

A prerequisite for the provision of such assistance to Ukraine under the Fund is that it continues to pursue a course that provides for the observance of effective democratic mechanisms, including a multi-party parliamentary system, the rule of law, and respect for human rights, including those of persons belonging to minorities.

In implementing the opportunities of the Ukraine Fund, the European Commission and Ukraine will take appropriate measures to protect the EU's financial interests, in particular in the context of preventing, detecting and eliminating fraud, corruption, conflicts of interest and irregularities.

The European Council will play a key role in the management of the Ukraine Fund. In particular, it will have to approve the Ukraine Plan and its annexes by a qualified majority, and will decide on the approval or suspension of payments based on the relevant assessment and proposals of the European Commission.

Based on the annual report of the European Commission on the implementation of the Ukraine Facility, the European Council will hold annual discussions on the implementation of the fund to provide recommendations. If necessary, in two years' time, the European Council will task the EC to develop proposals for revising the funding in the context of the new EU multi-annual budget.