The EC approves the Ukraine Facility plan; Kyiv will receive payments totaling €50B from the fund.

The European Commission adopted the Ukrainian Facility, which is the basis for implementing the €50B Ukrainian fund in the EU budget for 2024-2027. Thus, Ukraine will receive regular payments that are critically important for budgetary support.

The EC notes that payments will be made subject to Ukraine’s implementation of the agreed-upon reforms and investment actions. According to the EC, the Ukrainian plan effectively responds to the Ukrainian Fund’s needs and defines those key reforms and investments that can accelerate sustainable economic growth, attract investments, and unlock the country’s growth potential in the medium and long term.

The plan also provides framework conditions for the reconstruction and modernization of Ukraine.

In a month, Ukraine will receive €1.89B in pre-financing. The EC predicts that, by implementing reforms and investment programs, Ukraine’s GDP will grow by 6.2% by 2027 and 14.2% by 2040. It can also reduce the national debt by about 10 percentage points of GDP by 2033.