European Commission disburses 1.5 bln euros in financial aid to Ukraine

BRUSSELS. April 24 (Interfax) - The European Commission announced the disbursement of a second Ukraine Facility tranche in the amount of 1.5 billion euros on Wednesday.

"The additional 1.5 billion euros we disburse today will ensure that Ukraine can continue to keep the State and basic services running for the population," European Commission President Ursula von der Leyen said.

"Europe remains united and resolute in its support for Ukraine," she said.

"The disbursement follows the positive assessment by the commission of the agreed policy conditions linked to reforms in the area of judiciary, anti-money laundering, public finance management, business environment and agriculture, as well as reporting requirements to ensure the transparent and efficient use of the funds," the European Commission said in a statement on Wednesday.

"A general precondition for the support under the Ukraine Facility is to respect effective democratic mechanisms," the statement said.

As reported, the overall Ukraine Facility budget will consist of loans totaling 33 billion euros and grants totaling 17 billion euros. Out of that amount, 38.27 billion euros will support the budget, 6.97 billion euros will go to the investment fund, and 4.76 billion euros will finance technical and administrative support.

In March, 4.5 billion euros were disbursed from the Ukraine Facility for bridge financing. As 1.5 billion euros were transferred in April, the disbursement of 1.9 billion euros is expected in May. Later on, the funding will be provided on a quarterly basis, following the achievement of plan targets.

The European Parliament approved Ukraine Facility regulations in late February.

The Ukrainian government drafted a plan of national restoration, reconstruction and modernization and specified reforms and investments required for entry into the EU in order to launch the Ukraine Facility. Emphasis was placed on reforming public administration, ensuring the supremacy of law, fighting corruption, and conducting effective financial management. The Ukrainian government approved the plan on March 18.

On March 12, Ukraine and the European Union signed a loan agreement and a memorandum on bridge financing under the Ukraine Facility in 2024-2027.