EU could allocate 3.4 bln euros to Ukraine under Ukraine Facility by summer, assessing govt plan meanwhile
MOSCOW. April 15 (Interfax) - The European Commission expects Kiev to fulfill previously agreed conditions for it to disburse another 1.5 billion euros of the Ukraine Facility in April, Ukrainian media reported, quoting a statement by Executive Vice President of the European Commission Valdis Dombrovskis.
"The next payment [under the Ukraine Facility] of 1.5 billion euros is planned for this month if policy conditions are fulfilled," he said in a press statement following the meeting of the EU Council of Ministers in Luxembourg April 12.
Dombrovskis said the European Commission was assessing the Ukraine Plan [drawn up by the country's government to implement the Ukraine Facility program] with a view to drawing up quarterly indicators of reforms and investments to be met to unlock future payments.
"We will finalize this work very soon and transmit the assessment to the [European] Council. Once approval is secured, this would pave the way for Ukraine to receive 1.9 billion euros in pre-financing, most likely in May," he said.
Thus, the country could receive 3.4 billion euros from the EU altogether in April-May.
Dombrovskis said the Ukraine Facility of 50 billion euros for the period to 2027 would help Ukraine maintain key public services and ensure the functioning of the state. A first tranche of 4.5 billion in bridge financing was allocated in March.
Regarding the Ukraine Plan, Dombrovskis said this would be the main tool for implementing the Ukraine Facility. It focuses on structural reforms to tackle barriers to growth, investments in key sectors and measures to promote Ukraine's convergence with EU rules and standards as part of its European Union accession path.
The Ukraine Facility's total budget will be 33 billion euros in the form of loans and 17 billion euros in the form of grants, it has been reported.
This will include 38.27 billion rubles euros to support the budget, 6.97 billion rubles for the investment fund and 4.76 billion euros of administrative support.
The European Parliament approved the Ukraine Facility regulation at the end of February.
To launch the Ukraine Facility, the Ukrainian government had to come up with a plan for the country's recovery, reconstruction and modernization and to specify the reforms and investment needed for its EU accession path. Special emphasis is placed on reforming the civil service, on the rule of law, on the fight against corruption and in effective management of finances. The government approved this plan on March 18.
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.