European Commission endorses Ukraine Plan, pawing way for payments from EUR 50B fund

The European Commission has endorsed the Ukraine Plan, which is the basis for the implementation of the EU's EUR 50 billion Ukraine Facility for 2024-2027.

The European Commission said this in a press release posted on its website, Ukrinform reports.

"Today, the Commission has adopted a proposal for a Council Implementing Decision that assesses positively the Ukraine Plan, Ukraine's comprehensive reform and investment strategy for the next four years. This important step paves the way for regular and predictable support to Ukraine under the EU's up to EUR 50 billion Ukraine Facility," the press release reads.

According to the document, financing under the Facility will help Ukraine to keep its administration running, pay salaries and pensions, provide basic public services, and support recovery and reconstruction while it continues to defend itself against Russia's aggression.

"Ukraine's strategy for reforms and investments offers a solid basis to rebuild a more modern and prosperous Ukraine, on its path towards the EU. The Commission's positive assessment of the Ukraine Plan will pave the way for regular payments under the Ukraine Facility. With today's proposal, we showcase once again that Europe stands with Ukraine for as long as it takes, and that we are ready to deliver much-needed financial support," Commission President Ursula von der Leyen said.

The payments will be disbursed subject to the implementation of the agreed reform and investment steps set out in the annex of the Council Implementing Decision. In addition, financial support under the Ukraine Plan will be made available under the precondition that Ukraine continues to uphold and respect effective democratic mechanisms.

"The Commission assessment of the Ukraine Plan is based on the criteria established by the Ukraine Facility Regulation. In particular, the Commission assessed whether the Ukraine Plan constitutes a targeted and well-balanced response to the objectives of the Ukraine Facility, whether it addresses the challenges of Ukraine's accession track, and whether it responds to Ukraine's recovery, reconstruction and modernization needs," the press release reads.

According to the Commission's assessment, the Ukraine Plan effectively addresses the objectives of the Ukraine Facility, by identifying those key reforms and investments that can boost sustainable economic growth and attract investments, to amplify the country's growth potential in the medium-to-long term. The Plan also provides a framework to guide the recovery, reconstruction and modernization of Ukraine. Finally, the assessment finds that the Plan proposes adequate mechanisms and arrangements to protect the financial interest of the EU, by ensuring an effective implementation, monitoring and reporting on the Plan. 

The Ukraine Plan identifies 69 reforms and 10 investments, broken down into 146 qualitative and quantitative indicators. The reforms proposed under the Ukraine Plan cover 15 areas including energy, agriculture, transport, the green and digital transition, human capital, as well as state-owned enterprises, the business environment, public finances, and decentralization. They aim at enhancing Ukraine's macro-economic and financial resilience, improving governance, increasing the capacity and efficiency of the administration, the accountability and integrity of the judiciary, supporting the development of the private sector and creating an environment conducive to sustainable economic growth. Several reforms are expected to help Ukraine's efforts on the accession path by advancing alignment with the EU acquis, notably in public administration, public finance management, anti-money laundering, public procurement, as well as the transport and agri-food sectors. Investments cover the fields of human capital, energy, transport, agri-food, business environment and regional policies.

Following the Commission's positive assessment of the Ukraine Plan, Member States have one month to adopt the Council Implementing Decision put forward by the Commission.

The adoption of the proposed Council Implementing Decision would enable the Commission to disburse up to EUR 1.89 billion in pre-financing until regular disbursements tied to the implementation of reform and investment indicators under the Ukraine Plan would start.