Ukraine will receive EUR 27 billion in soft loans and EUR 1.9 billion in unconditional financing from the EU over the next three years. The relevant financing agreement was signed by the parties within the framework of the Ukraine Facility.
The National Bank of Ukraine explained that in the near future after this agreement enters into force, Ukraine will receive EUR 1.9 billion in unconditional financing from the European Union.
On May 14, the EU Council approved the Plan for the Ukraine Facility, developed together with European partners, covering the period 2024-2027. This plan includes a list of structural reforms aimed not only at recovery and reconstruction, but also at advancing Ukraine on the path to EU membership and supporting European integration processes. On June 6, the Verkhovna Rada ratified the Framework Agreement between Ukraine and the EU on special mechanisms for the implementation of Ukraine’s financing under the Ukraine Facility.
The agreement, signed by the parties at the end of May, defines the principles of financial cooperation between the EU and Ukraine, in particular regarding the management and control of the use of funds within the Ukraine Facility. The NBU noted that the agreement officially launched the implementation of the Plan of Ukraine.
Ukraine Facility contains the following main components:
1) direct support of the state budget (38.27 billion euros, of which 33 billion euros in the form of loans and 5.27 billion euros in the form of grants);
2) a special investment instrument to cover risks in priority sectors (6.97 billion euros);
3) technical support in the implementation of reforms, as well as interest coverage on loans, including previously received ones (4.76 billion euros).
