Ukraine Plan: EU Council greenlights payments under Ukraine Facility
That's according to a press release posted on the website of the European Council, Ukrinform reports.
"The Council considered in particular that thanks to this plan, Ukraine fulfills the precondition for support under the Ukraine Facility (up to EUR 50 billion), and that now regular payments can start to flow)," the press release reads.
"An important step has been made to deliver much-needed, regular and predictable financial support to Ukraine's recovery, reconstruction, and modernization over the next four years. The EU has once more confirmed its commitment to Ukraine's stability and growth," said Vincent van Peteghem, Belgian Minister of Finance and President of the Council.
According to the press release, payments to Ukraine will be disbursed by the EU subject to the implementation of the agreed reform and investments in the form of the qualitative and quantitative steps set out in the annex of the Council implementing decision. The reforms and investments foreseen have a significant potential to enhance growth, sustain macroeconomic stability, improve the fiscal situation and to support Ukraine's further integration with EU.
Today's decision provides further details on the arrangements and timetable for its implementation, including the envisaged timetable for disbursement of the support and its payment schedule. The final qualitative and quantitative steps are to be completed by the end of 2027.
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, including a multi-party parliamentary system and the rule of law, and to guarantee respect for human rights. Financial support is also dependent on strengthening of the rule of law, upholding the independence of the judiciary, strengthening the public administration reform, and fighting corruption - in particular high-level corruption – and money laundering.
"Today's decision will 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 will start," the press release said.
The Ukraine Facility, which entered into force on March 1, 2024, foresees up to EUR 50 billion of stable financing, in grants and loans, to support Ukraine's recovery, reconstruction, and modernization for the period 2024 to 2027. Of this, up to EUR 32 billion of the Ukraine Facility is indicatively earmarked to support reforms and investments set out in the "Ukraine Plan," whereby disbursements will be conditioned to the delivery of identified indicators. Since its entry into force, the Ukraine Facility already disbursed EUR 6 billion by way of bridge financing, after fulfillment of agreed policy conditions.
