On Monday, EU Council member states reached an agreement to release the second tranche of funding under a 50 billion euro initiative aimed at supporting Ukraine. The forthcoming transfer will allocate 4.1 billion euros to help cover Ukraine’s current state expenditures, with the European Commission expected to facilitate the transfer shortly.
This marks the second installment from the financial instrument established by the EU for Ukraine back in February. In order to qualify for the funds, Kyiv had to meet specific reform conditions, including enhancements in public finance transparency and judicial processes.
During the meeting, member states acknowledged that Ukraine had made further progress on its commitments, thus enabling the release of the funds. Recent reforms by Ukraine focused on areas such as anti-corruption measures, money laundering prevention, updates to the Criminal Code and Code of Criminal Procedure, improvements in the business environment, energy sector reforms, and initiatives aimed at green transformation and environmental conservation.
In their statement, the EU Council underscored the urgency of disbursing the funds promptly, considering Ukraine’s challenging fiscal situation.
The European Commission will soon proceed with the disbursement. Overall, Ukraine is set to receive 50 billion euros from this funding scheme, which will be distributed until 2027. Out of this total, 17 billion euros will be offered as non-repayable support, while 33 billion euros will be provided as low-interest loans backed by EU states.
Additionally, funds from loans secured by the G7 nations, which are to be repaid using proceeds from frozen Russian assets, will soon be sent to Kyiv. This initiative amounts to 45 billion euros, with the EU contributing 35 billion euros in support. This financial aid will also be non-repayable, enabling Ukraine to address its current state expenses. (09.12.2024)
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