Ukraine has received 4.5 billion euros of bridge financing from the European Union within the framework of the Ukraine Facility programme. This was announced by the First Deputy Prime Minister of Ukraine and the Minister of Economy of Ukraine, Yuliia Svyrydenko. 

It is expected that Ukraine will be able to receive the second tranche of 1.5 billion euros in April 2024, following the assessment of the implementation of the five required indicators.

“We are one step away from the start of the Ukraine Facility programme. This week, the Government has approved the Ukrainian Plan for the implementation of this programme, and now we are waiting for its assessment by the European Commission and approval by the committee of the EU member states. After that, the Ukraine Facility programme will finally become effective. Its implementation will help to significantly strengthen the resilience of the national economy, improve the business climate, increase investment inflows and GDP growth. The funds that Ukraine has now received from the EU will be used to cover the current needs of the state budget and will contribute to ensuring macroeconomic stability”, said Yuliia Svyrydenko.

Under the Ukraine Facility Regulation, within the framework of bridge financing, Ukraine can receive up to 1.5 billion euros per month until the final approval of the Ukraine Facility Plan. At the same time, the bridge financing was launched on December 31, 2023. This allowed Ukraine to attract 4.5 billion euros in March 2024 in total over the first three months of the year. Ukraine will be able to receive the next 1.5 billion euros in April after meeting the indicators for the bridge financing. 

As a reminder, in February 2024, the European Parliament approved the Regulation of the Ukraine Facility programme. According to the approved Regulation, the amount of EU support for Ukraine in 2024-2027 will amount to 50 billion euros, of which 38.27 billion euros will be allocated to support the state budget. 

The Ukraine Facility Plan is a technical document required to implement the EU’s financial support programme for Ukraine. In total, it includes more than 150 indicators in 69 areas of reforms, the implementation of which is planned by 2027. The plan was developed in full synchronization with Ukraine's key international partners. In this regard, the indicators provided for by the Plan partially correspond to the existing international commitments of Ukraine under other agreements.

The Ukraine Facility Plan also comprises 16 investment indicators, which are included in the general list of changes. To meet them, it is necessary to continue and strengthen programmes for infrastructure development, demining, renewable energy, support for small and medium-sized enterprises, etc.

It is planned to implement over 36 indicators in 2024 in the areas of improving public finance management, fighting corruption, managing state property, developing human capital, improving the business environment and developing priority industries. 

It is expected that the last instalment under the programme will be received in 2028, based on the fulfillment of indicators for the fourth quarter of 2027.

The plan is not an overall recovery strategy, it is only one of the Government's measures for the development and recovery of Ukraine. The main focus of the Plan is on the development of sectors and industries that can give the greatest positive effect on the growth of the national economy.

The preparation of the Ukraine Facility Plan was led by Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, and the team of the Ministry of Economy of Ukraine in cooperation with other ministries and relevant government authorities, as well as in constant consultation with representatives of the European Commission.

Representatives of business, public organizations, the Parliament, as well as representatives of the regions were also actively involved in the creation of the Plan. The Kyiv School of Economics, with the support from UK International Development of the UK government, provided analytical and organizational support in the development of the document. In total, 133 proposals from business representatives and 84 from non-governmental organizations have been partially or fully taken into account when developing the Plan.