On Wednesday 20 March, the European Commission disbursed the first €4.5 billion in support under the new EU Facility for Ukraine, worth €50 billion over four years. These funds will help the country to finance the functioning of the state, such as public wages, pensions, and the provision of basic public services.
The disbursement is being made in the form of bridging financing, pending approval of the Ukraine plan. An addition of €1.5 billion in bridge financing is expected in April, subject to the Commission's positive assessment of compliance with the policy conditions and reporting requirements to ensure transparent and efficient use of the funds. Policy conditions are linked to important reforms in the fight against corruption, money laundering and sound financial management, among others.
On the same day, Ukraine also submitted its official Ukraine Plan, that paves the way for regular payments under the Facility conditioned to the reform and investment agenda of Ukraine for the next four years. The Commission must now assess this plan, which focuses on structural reforms, investment and measures to promote convergence with the EU. It must also verify if the plan meets the objectives of the Ukraine Facility, whether it is coherent in addressing the relevant challenges in the context of Ukraine’s accession process and whether the measures proposed by Ukraine can ensure an adequate level of protection of the Union’s financial interests. The Commission will then submit a proposal for an EU Council implementing decision to approve it as a condition for access to regular payments.
Receiving the plan from Ukrainian Prime Minister Denys Chmyhal, the President of the European Commission, Ursula von der Leyen, explained that this document “will be a key reference point for other donors as they develop their own support programmes. This is crucial for Ukraine to ensure the coherence of all support efforts”, she added.
Remarkable progress in reforms
Earlier in the day, at the EU-Ukraine Association Council, the High Representative of the Union, Josep Borrell, highlighted the “remarkable progress” made by Ukraine in terms of reforms. The Commissioner for Enlargement, Olivér Várhelyi, pointed out that Kyiv still had to make some efforts with regard to the four criteria that Ukraine still had to meet, highlighting the rights of people belonging to national minorities.
“There is no alternative to the path towards EU membership, it is irreversible”, explained Prime Minister Chmyhal.
The European Commission has forwarded the draft negotiating framework to the Member States, who must now reach agreement. According to draft conclusions from the European Council, EU leaders are expected to call on their ministers to make progress on this issue. A number of Member States want an initial intergovernmental conference to be held by the end of June.
See the joint press release published at the end of the 9th EU/Ukraine Association Council: https://aeur.eu/f/bfz (Original version in French by Camille-Cerise Gessant)