In 2024, the Ukraine Facility program is designed to allocate from 1 billion to 1.5 billion euros to support Ukrainian business, with a special emphasis on small and medium-sized enterprises, as reported by Oleksiy Sobolev, Deputy Minister of Economy of Ukraine. These funds will help reduce the cost of collateral for enterprises and expand the volume of lending, thanks to cooperation with international financial organizations and Ukrainian banks.
Within the framework of the program, a total of 12 billion euros is provided for the expansion of European projects in Ukraine within four years. In particular, the "Pillar 2" component of the Ukraine Facility provides for the allocation of 7 billion euros to support private, municipal and state projects. The program focuses on seven key sectors, including energy, defense, agriculture, IT, transport, critical materials and manufacturing.
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, of which 70% will be directed to small and medium-sized businesses. Cooperation with Ukrainian banks participating in the program opens access to additional resources for cheaper loans and other benefits for business.
Among other initiatives of the Ministry of Economy is the "Made in Ukraine" support program, which includes grant programs for veterans, compensation for farmers for the purchase of machinery, as well as grants and compensation for the processing industry. The "Affordable loans 5-7-9%" program has also been changed to facilitate business lending conditions.
In February, the European Council supported the allocation of 50 billion euros to Ukraine under the Ukraine Facility, which is confirmed by the arrival of the first tranches in March and April. With the approval of the Ukraine Facility Plan in May, the European Union identified specific reforms needed to obtain additional funding. Fulfillment of these conditions will allow Ukraine to attract a total of 16 billion euros in 2024, including 3 billion euros in the form of grants.
