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Ukraine signs €6 billion aid agreement with EU

Ukraine signs €6 billion aid agreement with EU Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

Ukraine and the European Union have signed an agreement on bridge financing for Ukraine. The total amount of the provided preferential funds is 6 billion euros, according to the Ministry of Finance of Ukraine.

It is expected that the first payment of 4.5 billion euros will be received by the State Budget of Ukraine already in March.

The rest of this amount - 1.5 billion euros - Ukraine will be able to receive in April 2024 after the evaluation by the European Commission of the indicators achieved.

"As part of the Bridge financing mechanism, Ukraine is implementing 5 indicators in the areas of public finance management, anti-corruption, business environment development, etc.," the Ministry of Finance reported.

After the approval of the Plan for the Ukraine Facility, it is expected that 1.9 billion euros of unconditional funding will be directed to the state budget.

The rest of the budget support will be received by Ukraine quarterly after the indicators specified in the Plan for Ukraine are met.

"Along with our European partners, we are completing the preparation of the Plan for the Ukraine Facility and preparing for the full launch of the program. We have made significant progress. The signing of the Agreement will allow us to start financing even before the official approval of the Plan and will provide EUR 6 billion to cover the current needs of the State Budget in March and April this year," said Minister of Economy Yulia Svyrydenko.

Today, March 12, the European Commission approved the negotiating framework for Ukraine's accession to the European Union.