European Commission approves first payment of EUR 4.2B under Ukraine Facility - von der Leyen

The European Commission has approved the first regular payment of EUR 4.2 billion under the EU's Ukraine Facility.

That's according to a statement posted on the website of the European Commission, Ukrinform reports.

"The people of Ukraine are fighting an atrocious war. And at the same time they need functioning schools and hospitals, access to water and electricity, trains, roads and bridges to keep the country running. This is why our European Ukraine Facility continues to provide vital support to face all of these challenges. And despite all the hardship, Ukraine is taking forward key reforms for its recovery and to advance on its EU path. This paved the way for the Commission's green light of an additional payment of close to €4.2 billion to Ukraine," European Commission President Ursula von der Leyen said.

She expressed hope that the Council of the EU would quickly approve such a decision. She confirmed that the EU would continue to support Ukraine for as long as it takes.

According to the statement, the next tranche of almost EUR 4.2 billion will help Ukraine support Ukraine's macro-financial stability and the functioning of its public administration. Once adopted by the Council, this decision will bring to EUR 12 billion the total EU funding disbursed to Ukraine since the Facility became operational in March this year.

Regular quarterly payments under the Ukraine Facility are conditional on Ukraine meeting pre-agreed requirements, and ensure predictable financial assistance. This first regular payment under the Facility will follow the previous bridge and pre-financing support, and is a testament to the swift implementation of the Ukraine Plan.

Following the assessment of the payment request submitted by Ukraine on July 9, 2024, the Commission has concluded that Ukraine has satisfactorily fulfilled the nine reform indicators linked to the first regular payment in support of the Ukraine Plan, Ukraine's reform and investment strategy for the next four years. These reforms cover public financial management, governance of state-owned enterprises (SOEs), business environment, energy and demining.

In particular, Ukraine has adopted the legislation necessary to reform the Economic Security Bureau of Ukraine. The new law represents a solid stepping stone for transforming the Bureau into a supervisory authority that will be more effective in combatting tax evasion and economic crime. It introduces open and merit-based procedures for recruitment, including for a new Head who will be chosen by a commission of six members, half of whom will be international experts. The law will also help ensure the integrity and adequate professional competencies of staff..

Ukraine has adopted legislative changes to bring corporate governance standards closer to international standards, including clearly defining the powers of supervisory boards.

Ukraine has adopted its National Energy and Climate Plan, coordinating and planning energy and climate policies by 2030, with specific targets including a significant reduction of greenhouse gas emissions and an increased share of renewable energy.

Photo: Olivier Hoslet/EPA