Ukraine received €2.3 billion from the EU under the Ukraine Facility

Ukraine received €2.3 billion from the EU under the Ukraine Facility - Ministry of Finance

Ukraine received EUR 2.3 billion of financial assistance from the European Union following the decision of the EU Council to disburse the sixth tranche under the mechanism Ukraine Facility. This was reported by the Ministry of Finance of Ukraine.

Structure of the tranche

The total amount of funding consists of:

• 2.1 billion euros of loan facilities;

• 200 million euros in grant aid.

This is Sixth regular tranche under Pillar I, which provides direct budget support. The funds will be used to Priority social and humanitarian expenditures of the state budget.

Conditions met

Ukraine has fulfilled the requirements to receive the funding:

• Eight reform steps, The amount of the sixth tranche is not yet known;

• one extra step within the fourth tranche.

These commitments cover public finance, governance and institutional reforms.

Position of the Ministry of Finance

Minister of Finance of Ukraine Sergey Marchenko stressed that support from the European Union is critically important for the country:

«The EU's support is key to Ukraine's macro-financial stability and reaffirms our commitment to reforms and our path to EU membership.».

Context.

The Ukraine Facility mechanism provides for long-term financial support for Ukraine in 2024-2027 with a focus on budget stability, economic recovery and preparation for EU accession. Regular tranches are conditional on the implementation of specific reforms and structural changes.