In 2024, the Ukraine Facility is expected to allocate between €1 billion and €1.5 billion to support Ukrainian businesses, with a particular focus on small and medium-sized enterprises, according to Oleksiy Sobolev, Deputy Minister of Economy of Ukraine. These funds will help reduce the cost of collateral for businesses and expand lending volumes, through cooperation with international financial institutions and Ukrainian banks.
The program provides a total of €12 billion to expand European projects in Ukraine over four years. In particular, the “Pillar 2” component of the Ukraine Facility provides €7 billion to support private, municipal and public projects. The program focuses on seven key sectors, including energy, defense, agriculture, IT, transport, critical materials production and processing.
Additionally, in 2024, it is planned to allocate up to 1.5 billion euros for the development of existing programs implemented by international financial organizations in Ukraine, 70% of which will be directed to small and medium-sized businesses. Cooperation with Ukrainian banks participating in the program opens up access to additional resources for cheaper loans and other benefits for businesses.
Among other initiatives of the Ministry of Economy is the support program “Made in Ukraine”, which includes grant programs for veterans, compensation for farmers for the purchase of equipment, as well as grants and compensation for the processing industry. The program “Affordable Loans 5-7-9%” has also been changed to facilitate business lending conditions.
In February, the European Council supported the allocation of €50 billion to Ukraine under the Ukraine Facility, as confirmed by the disbursement of the first tranches in March and April. With the approval of the Roadmap for the Ukraine Facility in May, the European Union identified specific reforms needed to obtain additional financing. Fulfilling these conditions will allow Ukraine to attract a total of €16 billion in 2024, including €3 billion in grants.
