Ukrainian govt approves Ukraine Facility Plan for 50 bln euros of EU aid
MOSCOW. March 18 (Interfax) - The Ukraine government has approved the Ukraine Facility Plan, Ukrainian media quoted Prime Minister Denis Shmygal as saying.
"It is the basis for the provision of financial support within the program, which is designed for four years and has a total volume of 50 billion euros. The plan contains structural reforms that correspond to more than 100 quarterly indicators. These are European approaches to public administration reform, to fight against corruption, to economic and sectoral reforms in various areas: from the energy and agricultural industries. In addition, the document spells out key areas such as the green transition, digitalization, and European integration," Shmygal said on Telegram.
"In the near future, we will submit it for consideration by the European Commission. Thanks to the implementation of the reforms of the Ukraine Facility Plan, Ukraine will be able to receive about 16 billion euros this year," he said.
The Ukrainian Economy Ministry said the Ukraine Facility Plan provided for achieving benchmarks for approximately 40 indicators this year, in particular in improving public finances management, fighting corruption, managing state property, improving the business environment as well as developing human capital and priority sectors.
According to the ministry, in general, the plan contains over 150 indicators in 69 areas of reform, the fulfilment of which is scheduled for the period to 2027. Since the plan was developed jointly with Ukraine's key international partners, some of the metrics correspond to some extent to Ukraine's existing international obligations under other agreements.
The EU Council and the European Parliament said in early February that they had agreed on a new mechanism to support Ukraine worth 50 billion euros for the period 2024-2027. This is "a new single special instrument to support Ukraine's recovery, reconstruction, and modernization, including key reforms necessary on its EU accession track," the EU Council said in a communique.
The total budget will be 33 billion euros in the form of loans and 17 billion euros in the form of grants.
To launch the Ukraine Facility, the government of Ukraine had to prepare a Plan that sets out the reform and investment agenda for Ukraine. The Plan will include its vision for recovery, reconstruction and modernization and the reforms it intends to undertake on the country's path towards EU accession.
The European Parliament approved the Ukraine Facility regulation at the end of February.
The Ukraine government in early March approved the draft memorandum and loan agreement within the Ukraine Facility.
On Tuesday, March 12, Ukraine and the European Union signed a loan agreement and a memorandum on transition financing for Ukraine within the Ukraine Facility for 2024-2027, which would enable Ukraine to receive 4.5 billion euros in March and, provided two conditions are met, another 1.5 billion euros in April.