Brussels: Europe and the Arabs
According to a European statement issued in Brussels today, the Commission gave a positive assessment of the first regular payment of approximately 4.2 billion euros within the framework of the European Union Ukraine Facility, to support the overall financial stability in Ukraine and the work of its public administration. Once adopted by the Council, this decision will bring the total EU funding for Ukraine to €12 billion since the facility began operating in March this year.
Regular quarterly payments under the Ukraine Facility are conditional on Ukraine meeting pre-agreed requirements and ensuring predictable financial assistance. This first regular disbursement under the Facility will follow previous temporary support and pre-financing, and is a testament to the rapid implementation of Ukraine's plan.
After evaluating Ukraine's payment request on 9 July 2024, the Commission concluded that Ukraine had satisfactorily met the nine reform indicators associated with the first regular payment in support of the Ukraine Plan and Ukraine Reform and Investment Strategy over the next four years. Years. These reforms cover public financial management, governance of state-owned enterprises, business environment, energy and demining.
European Commission President Ursula von der Leyen said: “The people of Ukraine are fighting a brutal war. At the same time, they need functioning schools and hospitals, and access to water, electricity, trains, roads and bridges to keep the country running. That is why our European facility in Ukraine continues to provide vital support to meet all these challenges. Despite all the difficulties, Ukraine is moving forward with key reforms to achieve its recovery and move forward on the European Union path. This has paved the way for the Commission to get the green light to pay an additional sum of approximately €4.2 billion to Ukraine, and I am confident that the Council will now agree quickly. The European Union will continue to support Ukraine as long as it takes.”
The steps to complete this payment request include the following:
Reform of the Office of Economic Security: Ukraine has adopted the necessary legislation to reform the Office of Economic Security of Ukraine. The new law represents a strong starting point for transforming the Bureau into a regulatory body that is more effective in combating tax evasion and economic crime. It offers an open and merit-based recruitment procedure, including the appointment of a new president who will be selected by a six-member committee, half of whom are international experts. The law will also help ensure the integrity and adequate professional competencies of employees.
New corporate governance standards for state-owned enterprises: Ukraine has adopted legislative changes to bring corporate governance standards closer to international standards, including clearly defining the powers of supervisory boards. These legislative changes will promote a more efficient corporate governance framework, especially for the largest state-owned companies.
Adoption of the National Energy and Climate Plan: Ukraine has adopted its National Energy and Climate Plan, to coordinate and plan energy and climate policies by 2030, with specific goals including a significant reduction in greenhouse gas emissions and an increase in the share of renewable energy.
Next steps
The Commission has now submitted to the Council its assessment of Ukraine's satisfactory fulfillment of the qualitative and quantitative indicators set out in the Ukraine Plan, together with a proposal for a Council Executive Decision to pay approximately €4.2 billion. The transfer to Ukraine will take place after this decision is approved by the Council, and the payment decision is approved by the Commission.
Ukraine will receive up to EUR 50 billion in grants and loans for the period 2024-2027 under the Ukraine Facility.
This facility supports Ukraine's efforts to maintain macro-financial stability, promote short-term recovery, as well as rebuild and modernize the country while implementing key structural reforms.
The financing is subject to support of Ukraine's plan to achieve previously agreed reform and investment indicators approved by the Council.
Ukraine must submit a justified request for payment every three months until the end of 2027, ensuring ongoing and predictable support. The Commission will then assess whether Ukraine has satisfactorily fulfilled the conditions stipulated in the Council's implementation decision.
The qualitative and quantitative steps proposed in Ukraine's plan cover reforms in the areas of energy, agriculture, transportation, green and digital transformation, human capital, as well as state-owned enterprises, business environment, public finance, or decentralization.