European Commission has paid first 4.5 bln euros of package totaling 50 bln euros to Ukraine - Borrell
MOSCOW. March 20 (Interfax) - The European Commission has paid a first 4.5 billion euros under the package totaling 50 billion euros to Ukraine, European Union High Representative for Foreign and Security Policy Josep Borrell said at a press conference following the Ukraine-EU Association Council in Brussels on Wednesday.
"Today, we have made the first payment of 4.5 billion euros of [...] the 50 billion euros to support the recovery, reconstruction and modernization of Ukraine. Tomorrow the European Council will discuss how to further speed up Ukraine's accession [to the EU]," Ukrainian media quoted Borrell as saying.
European Commissioner for Neighbourhood and Enlargement Oliver Varhelyi said the second payment would be made in April.
The Ukrainian Finance Ministry confirmed that the state budget had received 4.5 billion euros in accordance with the EU Ukraine Facility financial instrument.
"The funds raised will help to finance the state budget's priority social and humanitarian expenditures on time and in full," the ministry quoted its head, Sergei Marchenko, as saying in a statement.
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.
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.
Ukraine and the European Union on March 12 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.
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.