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Ukraine adopts reform plan under Ukraine Facility EU program for €50 billion

Ukraine adopts reform plan under Ukraine Facility EU program for €50 billion Photo: Prime Minister Denys Shmyhal (Vitalii Nosach, RBC-Ukraine)
Author: Liliana Oleniak

The Cabinet of Ministers has approved the plan for the Ukraine Facility program with the European Union for 2024-2027, which provides for the allocation of EUR 50 billion to Ukraine. The plan contains structural reforms that correspond to more than 100 quarterly indicators, according to Ukrainian Prime Minister Denys Shmyhal.

"These are European approaches to public administration reform, the fight against corruption, and economic and sectoral reforms in various areas: from energy and agriculture. In addition, the document contains cross-cutting areas such as green transition, digitalization, and European integration," he says.

According to him, the plan was developed jointly with European partners to bring EU membership closer.

"We will soon submit it to the European Commission for consideration. By implementing the reforms of the Ukraine Facility Plan, Ukraine will be able to receive about EUR 16 billion this year," he adds.

Ukraine Facility program

On February 28, the EU Council finally approved the Ukraine Facility program, under which Ukraine will receive EUR 50 billion in long-term loans by 2027.

In addition, on March 12, Ukraine and the EU signed an agreement on transitional financing for Ukraine. The total amount of concessional funds provided is EUR 6 billion. The first installment of EUR 4.5 billion will be transferred to the state budget of Ukraine in March without conditions. Ukraine will be able to receive the remaining €1.5 billion in April 2024 after the European Commission assesses the fulfillment of the indicators.

As RBC-Ukraine previously reported, the instrument for monitoring the use of EU funds for Ukraine under the four-year, €50 billion Ukraine Facility program will have three levels