The EU Council and the European Parliament announced on Tuesday night that they had agreed on a new mechanism to support Ukraine for EUR 50 billion for the period 2024-2027.

The Minister of Finance of the Belgian Presidency of the EU Council, Vincent van Peteghem said that the EU is ready to support Ukraine as long as necessary. The Ukraine Fund will allow providing consistent and predictable support to Ukraine. At the same time, support will help Ukraine advance the reforms and modernization efforts it needs on its path to future EU membership, he added.

A preliminary agreement has been reached by EU legislators to create a new single dedicated instrument to support the recovery, reconstruction and modernization of Ukraine while facilitating its reform efforts towards EU accession, according to a communiqué from the Council of the European Union.

The total budget of the Ukrainian fund will be EUR 50 billion. This fund will consolidate EU budgetary support to Ukraine into a single instrument, providing consistent, predictable and flexible support to Ukraine for the period 2024-2027, tailored to the unprecedented challenges of assisting the country.

The fund's total budget for Ukraine of EUR 50 billion will be divided into EUR 33 billion in loans and EUR 17 billion in grants.

The preliminary agreement must be approved by the EU Council and the European Parliament before the law can be formally adopted. Once adopted, it will be published in the Official Journal of the EU and will enter into force the next day, Brussels said.