The new tranche of the Ukraine Facility will be disbursed to Ukraine by the end of the year: Ursula von der Leyen

Ukraine will receive another tranche under the Ukraine Facility program by the end of this year. This was stated by the President of the European Commission, Ursula von der Leyen, during a press conference after the end of the meeting of the European Council. informs “Interfax-Ukraine”.

Von der Leyen noted that Ukraine continues to take important steps in carrying out the reforms necessary for joining the EU.

“Ukraine has taken a huge step forward, the bilateral screening process is ongoing, and in parallel we have the Ukrainian Plan, which includes important reforms for this accession path. And it is supported by 50 billion euros allocated based on achievements in reforms. This is 50 billion euros for four years – 2024-2027. We see significant progress and thanks to this progress we have already allocated about 12 billion euros and we expect that the next tranche will be allocated by the end of the year.”, she noted.

However, the president of the European Commission did not specify the exact size of the next tranche.

On August 13, the European Commission paid Ukraine almost 4.3 billion euros as part of the first regular payment under the Ukraine Facility program.

What is the Ukraine Facility program

On June 6, the Verkhovna Rada of Ukraine ratified the Framework Agreement between Ukraine and the European Union on special financial support mechanisms under the Ukraine Facility program. This program includes three main components:

• Direct budget support – 38.27 billion euros, of which 33 billion euros are provided in the form of loans, and 5.27 billion euros – in the form of grants.
• Special investment tool – EUR 6.97 billion to cover risks in priority sectors.
• Technical support for reforms and coverage of interest on loans, including those already received – 4.76 billion euros.

Payments under this program are made quarterly based on Ukraine’s fulfillment of the indicators of the Ukraine Facility Plan and their positive evaluation by the EU. In 2024, approximately 16 billion euros of budget support is expected.