European Council and European Parliament agree on €50 billion aid package for Ukraine
Kyiv, Ukraine (Svidomi) – the European Council and the European Parliament European Parliament have reached a provisional agreement on the creation of a new instrument to support Ukraine's recovery, reconstruction and modernisation — the Ukraine Facility, worth €50 billion over the period 2024-2027.
"The EU is prepared to support Ukraine as long as needed. The Ukraine Facility will allow us to channel consistent and predictable support to Ukraine to help its people rebuild their country in the midst of the unprecedented challenges brought by Russia’s war of aggression" — said Vincent van Peteghem, Belgian Minister of Finance, according to the website of the Council of the EU.
The Ukraine Facility will be structured in three pillars:
- The Ukrainian government will prepare a plan of intent for the recovery, reconstruction, and modernisation of the country, as well as the reforms it plans to carry out in preparation for EU accession.
- The EU will provide budget guarantees and a combination of grants and loans from public and private institutions. The Ukrainian guarantee will cover risks associated with loans, guarantees, capital market instruments and other forms of financing.
- EU accession assistance and other support measures will help Ukraine comply with EU laws and carry out structural reforms on the path to future EU membership.
The budget of the Ukraine Facility consists of €33 billion in loans and €17 billion in grants.
The key condition is that Ukraine will continue to support and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and guarantee respect for human rights, including individual rights and minority rights.
Previously, the Hungarian Prime Minister, Viktor Orban, blocked this aid. However, Slovakia supported the Ukraine Facility program, which provides Ukraine with €50 billion from the European Union.
