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Ukrainian Ministry of Economy announces next tranche from EU

Ukrainian Ministry of Economy announces next tranche from EU Photo: A tranche from the EU for 1.89 billion euros is expected in June 2024 (Getty Images)
Author: Liliana Oleniak

Ukraine can receive a tranche from the European Commission for 1.89 billion euros in June 2024. This requires the final approval of the Ukraine Facility program in the European Union, according to the Ministry of Economy of Ukraine.

On April 24, Ukraine received 1.5 billion euros as part of the transitional financing of the Ukraine Facility.

"Transitional financing allows us to receive support even before the final launch of the Ukraine Facility. As part of the program, Ukraine has already received 6 billion euros in March and April this year. When the Plan for the Ukraine Facility is approved by the EU, we will receive the next payment of 1.89 billion euros pre-financing in June," says Ukrainian Minister of Economy Yulia Svyrydenko.

In the future, financing under the program will be carried out quarterly for the fulfillment of plan indicators for the Ukraine Facility. According to her, the next tranche within the program is expected in September - for 4.11 billion euros, and in November - 4 billion euros.

Ukraine Facility program

In February 2024, the European Parliament approved the regulations of the Ukraine Facility program. The EU support program for Ukraine for 50 billion euros will operate from 2024 to 2027 and will include three components:

  • The first component - direct support of the state budget - 38.27 billion euros, of which 33 billion euros in the form of loans and 5.27 billion euros in the form of grants;
  • The second component is a special investment instrument to cover risks in priority sectors - 6.97 billion euros;
  • The third component is technical support in the implementation of reforms, as well as covering interest on loans, including previously received ones - 4.76 billion euros.

Financing within the framework of the first component of the program will be carried out for the fulfillment of quarterly indicators defined in the Plan for the Ukraine Facility. The plan identifies key reforms and areas for investment that can contribute to sustainable economic growth and attract financing to strengthen the country's growth potential in the medium and long term. It also contains a quality system of transparency, audit, and control, which will also be strengthened as part of the envisaged reforms.

The European Commission approved the Plan for the Ukraine Facility on April 15 and proposed the EU Council adopt the document. Now the EU member states have one month to adopt the implementation decision proposed by the European Commission, which will pave the way for the full launch of the Ukraine Facility program.