Ukraine Facility: Ukraine may receive EUR 4.5B from EU aid package as early as March

That's according to the Ukrainian Economy Ministry's press service, Ukrinform reports.

"The vote on the Ukraine Facility in the European Council is a powerful signal of unwavering support for Ukraine from its partners. The next stage will be the determination of the final conditions of the program as part of the trialogue between the European Council, the European Commission and the European Parliament. The final regulation must be adopted by the European Parliament during the plenary session scheduled for February 26-29, 2024. We expect to receive the first payment of 4.5 billion euros as early as March," said Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

She stressed that the government was currently working on a respective agreement on transitional financing together with European partners. She expressed gratitude to Ukraine's allies for their support and trust in Ukraine.

The ministry said the decision by the European Council also reflects a positive assessment of the preparation of a "Ukraine Plan" for the Ukraine Facility, which is being coordinated by the Ministry of Economy. After the approval of the regulation in the European Parliament, the respective final requirements of the program will be taken into account in the Plan. When the document is approved by the government, the Plan will be submitted to the European Commission for consideration.

The Ukraine Plan provides for the implementation of structural reforms in the public sector, economic reforms aimed at developing the business climate and entrepreneurship, as well as steps for the development of priority sectors that can ensure rapid economic growth.

Support within the EU's Ukraine Facility program will be provided according to a fixed quarterly schedule for the fulfillment of the criteria set out in the Plan for carrying out the planned reforms.

The Ukraine Facility program provides for the provision of 50 billion euros to Ukraine during 2024-2027. Of this amount, EUR 39 billion will be sent to the state budget to strengthen macro-financial stability. The program also provides for a special EUR 8 billion investment instrument to cover risks in priority sectors. Investors will be able to receive financing under this instrument through the EBRD, the EIB and other international institutions. It is expected that the implementation of projects as part of this instrument will attract an additional EUR 30 billion of investments.

In addition, the budget of the Ukraine Facility program provides for a separate line of technical support, in particular funds to cover interest on loans under the Ukraine Facility, which will amount to EUR 3 billion.