European Commission endorses EUR 50 billion reform plan for Ukraine

The European Commission has supported the reform plan called the Ukraine Plan proposed by the Ukrainian government under the Ukraine Facility mechanism, which sets out the conditions for receiving EUR 50 billion in macro-financial assistance over 2024-2027.

Source: European Commission’s statement, European Pravda reports

Details: The European Commission noted that the reform plan "effectively addresses the objectives of the Ukraine Facility, by identifying those key reforms and investments that can boost sustainable economic growth and attract investments, to amplify the country's growth potential in the medium-to-long term."

The EU executive body adds that the plan is the basis for Ukraine's reconstruction and contains adequate mechanisms to protect the EU's financial interests.

After the European Commission's assessment, the reform plan requires the approval of EU member states, which takes one month. After that, the European Commission will be able to allocate up to EUR 1.89 billion in pre-financing before regular disbursements begin.

Background: 

• The Ukrainian government approved a reform plan for the Ukraine Facility on 18 March, which is the basis for the EU's financial support under a four-year programme totalling EUR 50 billion.
• The Ukraine Plan identifies 69 reforms and 10 investments, broken down into 146 qualitative and quantitative indicators. These reforms cover 15 areas, including energy, agriculture, transport, green and digital transition, human capital, as well as state-owned companies, business environment, public finance and decentralisation.
• On 20 March, the European Commission disbursed the first tranche of the Ukraine Facility to Ukraine in the amount of EUR 4.5 billion. 

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