The Cabinet of Ministers of Ukraine approved the Plan for the Ukraine Facility, which will become the basis for the implementation of the EU financial support program for Ukraine. The program is designed for four years and has a total volume of 50 billion euros for the period from 2024 to 2027.
After the Government approves the text of the Plan for the Ukraine Facility, it will be sent to the European Commission for evaluation and approval by the committee of EU member states. After that, the program will finally come into force.
The document envisages carrying out structural reforms in the public sector, implementing economic reforms to support the business climate and entrepreneurship, as well as steps to develop priority sectors with the aim of rapid economic growth.
The plan for the Ukraine Facility includes more than 150 indicators in 69 directions of reforms, which are planned to be implemented by 2027. There are also 16 investment indicators, for the implementation of which it is necessary to strengthen the programs of infrastructure development, demining, renewable energy and support of small and medium-sized enterprises.
Funding within the Ukraine Facility program depends on the performance of the indicators provided for in the Plan. In 2024, it is planned to implement more than 36 indicators aimed at improving the management of public finances, the fight against corruption, the management of public property, the development of human capital, the improvement of the business environment and the development of priority industries.
The last payment under the program is planned to be received in 2028, after the implementation of indicators for the IV quarter of 2027.
Prior to the launch of the Ukraine Facility program, a transitional financing mechanism in the amount of 6 billion euros is provided. As part of this transitional financing, Ukraine implements five indicators in the areas of public finance management, the fight against corruption, the development of the business environment, and the functioning of the land market. Three of them have already been implemented, two are still under development.
The first payment in the framework of transitional financing in the amount of 4.5 billion euros is planned to be received in March 2024. Ukraine will be able to receive the rest of this amount, 1.5 billion euros, in April 2024 after the European Commission evaluates the completed indicators.
