EU allocates more than $2 bn of financial support to Ukraine

According to Ukraine's Prime Minister Denys Shmyhal, the EU's total budgetary support since the beginning of this year has already reached almost $8.5 billion.

Jun 28, 2024 - 07:31

EU allocates more than $2 bn of financial support to Ukraine

European Union Flags. Credit: Wikimedia Commons/Thijs ter Haar.

Ukraine has received a tranche worth more than $2 billion as part of financial support from the European Union under the Ukraine Facility Plan.

As reported by the Prime Minister of Ukraine Denys Shmyhal on X.

According to Shmyhal, the EU’s total budgetary support since the beginning of this year has already reached almost $8.5 billion.

“I would like to thank European Commission President Ursula von der Leyen and her entire team for such unwavering support,” he wrote.

The tranche is part of the so-called Ukraine Facility Plan, which defines reform commitments for the period until 2027, as part of a ratified agreement with the EU.

On 20 March, the European Commission transferred the first tranche of the Ukraine Facility Plan to Ukraine, worth $4.8 billion.

EU aid package for Ukraine

In February of this year, Ukraine’s Ministry of Finance reported that the Ukraine Facility Plan is a tool to support Ukraine’s economic development and recovery, under which Ukraine will receive financial assistance “based on jointly agreed plans and priorities” of the Ukrainian government and the European Commission.

The European Parliament has overwhelmingly approved this €50 billion ($54 billion) aid package for Ukraine at the beginning of this year, as part of the EU budget. In general, the funding is set for the period from 2024 to 2027, and includes €33 billion ($35.8 billion) in loans and €17 billion ($18.5 billion) in grants.

The resolution specifies that EU support should focus on three areas: providing financial support for Ukraine to implement reforms and investments, maintaining macro-financial stability as outlined in the Ukraine plan; structuring investments to mobilize funding and expand access to financing; and offering assistance toward European integration to mobilize technical expertise and build capacity.

The plan also emphasizes the importance of investments and reforms aimed at transitioning to a green, sustainable, digital, and inclusive economy.

The European Commission must annually evaluate the implementation of the fund, and Ukraine must report on implementation progress in an annual report.

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