EU may cancel tranches under €50 billion Ukraine program: Factors at play
EU aid tranches to Ukraine can be canceled (Photo: Getty Images)
The EU Ukraine Facility reform program will include approximately 140 condition indicators, each with its own "price." In the absence of reforms, the money will simply "burn," according to the material by RBC-Ukraine titled "EU pledges €50 billion to Ukraine. Funds allocated with stringent oversight for reforms."
Although the document's final version is not yet ready, RBC-Ukraine managed to familiarize itself with its interim version.
The main areas of reform in the program will be public administration, public finance, the justice system, and the fight against corruption. Economic reforms will need to be carried out, in particular in the energy sector, transport, agriculture, IT, and digitalization.
It is already known that if an indicator is not met on time, the tranche will be reduced by a corresponding amount.
For example, to receive the next tranche of 600 million euros, Ukraine needs to meet three indicators by a certain deadline. If one of them is violated, let's say, the amount of money will be reduced proportionally to €400 million. To get the rest of the 200 million, the overdue indicator must be fulfilled within a year at the most. Otherwise, the money will "burn."
EU program
On February 28, the EU Council finally approved the Ukraine Facility program. Under this program, Ukraine will receive €50 billion in long-term loans by 2027. The first tranche of €4.5 billion is expected in March.
The RBC-Ukraine reported that the instrument for controlling the use of EU funds for Ukraine under the four-year €50 billion Ukraine Facility program will have three levels.
