29 Feb 2024 11:54

EU gives final approval for four-year 50-bln-euro Ukraine Facility - Shmygal

MOSCOW. Feb 29 (Interfax) - The European Union has given the final approval for the four-year 50-billion-euro Ukraine Facility, and the first tranche is expected in March, Ukrainian media said, citing Ukrainian Prime Minister Denis Shmygal.

"The EU has given the final approval for the four-year 50-billion-euro program supporting Ukraine. This instrument, Ukraine Facility, will help our government fund the budget deficit, will increase investment in our economy, and will expedite our EU membership. We are expecting the first tranche as early as in March," Shmygal said on Telegram on Wednesday evening.

Ukrainian Deputy Economy Minister Alexei Sobolev said earlier that the European Parliament's approval of the Ukraine Facility guidelines and the Ukraine Plan requirements is expected in late February - early March, after which the guidelines would compel the Ukrainian government to submit the Ukraine Plan to Brussels and to sign a memorandum and a loan agreement for interim funding in the amount of 4.5 billion euros in March and 1.5 billion euros in April.

"After the signing, the Europeans will go to the market, borrow funds and give them to us. Hopefully, that will happen in March," Sobolev said in an interview with Ukrainian media.

After that, the European Union will assess the Ukraine Plan's compliance with every requirement.

"I hope the program will start working to the fullest sometime in late April," he said.

As reported, the European Parliament approved the 50-billion-euro Ukraine Facility for 2024-2027. The funds will support Ukraine and its reforms for the sake of eventual admission to the European Union. The European Parliament's approval of the Ukraine Facility paves the way to the adoption of formal guidelines by the Council of the European Union, which will take effect after they are published in the Official Journal of the European Union.

It is assumed that further Ukraine Facility funding will depend on Kiev's implementation of the Ukraine Plan.