If the conditions defined as part of the implementation of the Ukrainian Fund in the EU budget are met, Ukraine will receive from the EU the next tranche in the amount of 1.5 billion euros by the end of April, and another 1.9 billion euros of transition financing, most likely in May current year. This was stated by Executive Vice President of the European Commission Valdis Dombrovskis, Ukrinform reports.
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What was announced in the EU
“The Ukrainian fund has acquired operational capacity. The European Commission has made the first payment of €4.5 billion of exceptional transition financing for Ukraine. The next payment of 1.5 billion is scheduled for this month if all conditions are met. This therefore provides a “lifeline” from the EU to help Ukraine, in these difficult times, continue to provide key public services and maintain the functioning of the state, while Russia continues its brutal war,” said a representative of the European Commission.
Read: Ukraine received from the EU the first tranche of macro-financial assistance worth 4.5 billion euros
He noted that the European Commission presented for consideration by European ministers the Ukrainian plan, which was submitted to the European Commission by the Ukrainian government several weeks ago. This document focuses on the implementation of structural reforms, overcoming barriers to growth, attracting investment in key sectors of the economy, as well as measures to further adapt Ukrainian legislation to EU laws and standards, in the context of Ukraine's progress towards membership in the European Union.
According to Dombrovskis, it is this Ukrainian plan that will be the main instrument for the implementation of the Ukrainian Fund in the EU budget for 2024-2027.
“The next step will be an assessment by the European Commission of the Ukrainian Plan with the aim of establishing quarterly indicators (to assess) the state of reforms and expenditures with the aim of opening the possibility for the next tranches. We will complete this work very quickly and give our assessment to the Council of the European Union. Once such conclusions are adopted, this will open up the opportunity for Ukraine to receive 1.9 billion euros in pre-financing, probably in May,” Dombrovskis noted.
< p>He welcomed the important ministerial decisions that provide the European Union with the opportunity to participate in increasing the capitalization of the EBRD in order to effectively continue financial support for Ukraine.
In addition, according to a representative of the European Commission, EU finance ministers today had a productive discussion with the European Investment Bank regarding further investments in the European security and defense sector.
Recall
As the Ministry of Finance wrote , February 1 EU leaders reached an agreement on the allocation of macro-financial assistance to Ukraine in the amount of 50 billion euros.
Ukraine Facility is a four-year program with a total volume of 50 billion euros. A significant portion of these funds will be directed to the state budget and will help finance the budget deficit.
Another component of the program involves the creation of a special investment instrument to cover risks in priority sectors. It will help attract additional funds for investment.
The EU should help cover Ukraine's needs for 2024-2027, with €33 billion in cheap loans and €17 billion in grants from the EU budget to provide Kyiv with stable funding during fight against Russian invasion.