Ukraine signs documents with EU for 6 bln euro transition financing in March-April

MOSCOW. March 13 (Interfax) - Ukraine and the European Union signed a loan agreement and memorandum on transition financing on Tuesday for Ukraine as part of the European Union's Ukraine Facility for 2024-2027, which will allow Ukraine to receive 4.5 billion euro in March and, if two conditions are met, an additional 1.5 billion euro in April.

As Ukrainian media reported, citing First Deputy Prime Minister - Minister of Economy of Ukraine Yulia Sviridenko, in addition to her signature, the documents were signed by Finance Minister Sergei Marchenko and Head of the National Bank Andrey Pyshny.

European Commission Vice-President Valdis Dombrovskis announced the upcoming March 4.5-billion euro payment to Ukraine on Tuesday. "And we expect to make another payment of 1.5 billion in April," he said.

The loan is being made on preferential terms with a maximum repayment period of 35 years and the start of repayment of the principal after 10 years, Pyshny said on social media.

Sviridenko said that, in order to receive the additional 1.5 billion euro, Ukraine needs to complete two more steps, which are currently in process. "We need to bring the State Land Cadaster and the State Register of Real Estate Rights into compliance, as well as take measures to support the implementation of industrial parks," she said.

The Ukraine Facility is 50 billion euro in total, which includes 38.27 billion euro in budget support, 6.97 billion euro for the investment fund and 4.76 billion euro in technical and administrative support, Ukraine's Finance Ministry said.