Ukraine expects to secure additional EUR 8.35 bln in 2026 as part of Ukraine Facility renewal
Ukraine expects to secure EUR 8.35 billion in additional financial support under the Ukraine Support Loan (USL), which is planned to be raised through the Ukraine Facility following the completion of the relevant approval procedures and subject to the Cabinet of Ministers’ approval of amendments to Ukraine’s Plan.
As Deputy Minister of Economy, Environment, and Agriculture Daria Marchak reported during a briefing with journalists on Thursday, the first priority has been to fully align all new indicators with the country’s European integration commitments and benchmarks. The second achievement is the correction of key shortcomings in the program’s financing mechanism and the coordination of an updated approach to partial disbursements within the Ukraine Facility, which makes the system predictable.
"It is important to us that the updated Ukraine Plan be as closely aligned as possible with Ukraine’s European integration commitments. In fact, implementing the Plan should mean simultaneously implementing part of the European integration program. This allows the state to avoid duplicating efforts and instead focus them on reforms that are important for both the Ukraine Facility and the EU accession negotiation process. The update also makes the mechanisms for implementing the Plan more predictable, particularly regarding financing and the assessment of actual progress," she said.
Regarding the detailed update to the financing mechanisms, the government official explained that under the partial disbursement methodology, steps will be credited with a possible proportional reduction in the final amount, whereas previously, partial non-fulfillment of a quantitative indicator completely blocked the disbursement for that step. The updated approach to partial payments allows for the consideration of steps completed ahead of schedule and actual progress on quantitative indicators when determining the amount of funding. In effect, early completion of steps will allow for a reduction in the size of penalties for unfulfilled steps.
In addition, the approach to partial payments has been updated, which will allow for the consideration of steps completed ahead of schedule and actual progress on quantitative indicators when determining the amount of funding. In fact, early completion of steps will allow for a reduction in the amount of penalties for unfulfilled steps. The European Commission has agreed to count critical expenditures on energy sector recovery as investment indicators. At the same time, at the suggestion of European partners, all deadlines for meeting the indicators have been automatically pushed back to the third quarter of 2027.
Regarding the specific list of reforms, the update involves adjusting the wording or timing of 35 existing steps and adding 26 new ones. The new conditions include steps in the areas of the rule of law and anti-corruption, measures on corporate governance of state-owned companies, subordinate legislation in the energy sector, changes regarding the operational autonomy and restructuring of JSC Ukrzaliznytsia, and a draft law on occupational safety.
At the same time, in agreement with the European Commission, the step regarding the assessment of local fiscal risks in the Budget Code was removed, and the law on veteran policy was replaced by the creation of an IT case management system to support veterans.
As reported, on June 8, Ukraine received the seventh tranche of funding from the European Union (EU) under the Ukraine Facility totalling EUR 2.8 billion, of which EUR 2.6 billion was transferred to the state budget. According to Ukrainian Prime Minister Yulia Svyrydenko, as of the end of May 2026, Ukraine had implemented 86 measures of the Plan, with another 65 at various stages of implementation.
Under the Ukraine Facility program, with a total budget of EUR 50 billion for 2024-2027, funds for direct budget support (EUR 38.27 billion) are disbursed in quarterly tranches after the European Commission confirms Ukraine’s implementation of specific reforms and indicators outlined in the Ukraine Plan. Delays in implementing reforms and meeting indicators lead to delays in funding as well.