EU council approves €3.5 billion aid to Ukraine under Ukraine facility

On March 17, the Council concluded that Ukraine met the necessary conditions to receive the payment, including:  

• Advancing reforms to increase the use of renewable energy sources;  
• Strengthening the independence of the energy regulator;  
• Simplifying border crossing procedures in line with EU standards;  
• Adopting a strategy for agricultural and rural development (including mine clearance of farmland);  
• Continuing work on identifying strategic and critical raw materials.  

About Ukraine facility  

Ukraine Facility is a financial instrument providing Ukraine with EU financial and technical assistance worth €50 billion from 2024 to 2027. This includes €38.27 billion for budget support, €6.97 billion for the investment fund, and €4.76 billion for technical and administrative assistance.  

The EU officially approved the four-year support program on February 28. On March 18, the Ukrainian government adopted a plan for the Ukraine Facility, which the European Commission described as a major achievement. The first tranche of macro-financial assistance from this large support package was transferred to Ukraine on March 20.  

In July, Ukraine’s First Deputy Prime Minister and Minister of Economy, Yuliia Svyrydenko, signed a financial agreement with the EU regulating a €5.27 billion grant. Later, the European Commission approved an additional €4.2 billion in funding for Ukraine under the Ukraine Facility.  

On December 18, the EU allocated Ukraine its second regular payment of €4.1 billion under the program.