EU may allocate EUR 1.5 bln to Ukraine in April, EUR 1.9 bln in May within Ukraine Facility
The European Commission expects Kyiv to fulfill previously agreed conditions and for the European Council to approve the Ukraine Plan, which will allow it to allocate another EUR 1.5 billion in April and EUR 1.9 billion in May under the Ukraine Facility, Executive Vice President of the European Commission Valdis Dombrovskis said.
"The next payment of EUR 1.5 billion is planned for this month if policy conditions are fulfilled," he said in a press statement following the April 12 meeting of the EU Council of Ministers in Luxembourg.
According to Dombrovskis, the Commission is assessing the Ukraine Plan with a view to drawing up quarterly indicators of reforms and investments to be met to unlock future payments.
"We will finalise this work very soon and transmit the assessment to the Council. Once approval is secured, this would pave the way for Ukraine to receive EUR 1.9 billion in pre-financing, most likely in May," the executive vice president said.
He said Ukraine Facility for EUR 50 billion for the period until 2027 is a lifeline from the EU in an extremely difficult time to help Ukraine maintain key public services and ensure the functioning of the state while Russia is waging a brutal war, and recalled that the first tranche of EUR 4.5 billion in transition financing was allocated in March.
Speaking about the Ukraine Plan, Dombrovskis said it will be the main tool for implementing the Ukraine Facility, and it focuses on structural reforms to tackle barriers to growth, investments in key sectors, and measures to promote Ukraine's convergence with EU rules and standards as part of its accession path.
As reported, Ukraine expects to receive a total of EUR 37.3 billion in 2024 within the Ukraine Facility, with a total need for external financing of the budget deficit in 2024.