All 27 EU leaders agreed on an additional €50 billion support package for Ukraine
This macro-financial aid will be provided to Ukraine within the Ukraine Facility program, included in the EU budget for 2024-27. The decision was adopted during an extraordinary summit of the European Council in Brussels on February 1, 2024.
“We have a deal (…) This locks in steadfast, long-term, predictable funding for Ukraine. The EU is taking leadership and responsibility in support for Ukraine. We know what is at stake,” reported Charles Michel, President of the European Council, on X (Twitter).
The Ukraine Facility is a four-year support program worth €50 billion. A significant part of the funds allocated under this initiative will be directed to the Ukrainian state budget and help finance the country’s budget shortfall. In addition, another program component provides for creating a special investment instrument to cover risks in priority sectors. It will allow the attraction of additional funds for investments.
“I am grateful to the President of the European Council, Charles Michel, and the leaders of the EU member states for their unwavering support. Each of your votes is a significant contribution to our joint victory,” stated Denys Shmyhal, Prime Minister of Ukraine.
Financing within the Ukraine Facility program will be provided every quarter. At the same time, Ukraine has to implement several reforms to receive the funding. Among them are the structural reforms in the Ukrainian state sector and the economic reforms to develop the business climate and entrepreneurship. The Ukrainian government also has to take further steps to develop priority sectors that can ensure the country’s rapid economic growth, as the Ministry of Economy of Ukraine informed.
A €50 billion Ukraine Facility for 2024-2027 was announced at the European Council meeting on December 14, 2023. However, the Hungarian Prime Minister Viktor Orbán opposed the joint proposal, a decision that required the unanimous approval of all EU leaders. In his turn, Charles Michel claimed that the European Council would revert to this matter during an extraordinary summit at the beginning of 2024 to adopt the decision about future funding for Ukraine finally.