The EU is close to approving €50B in financial aid to Ukraine, and the money may arrive in the first quarter.

EU ambassadors approved a “partial negotiating mandate” for a proposal to create a single specialized instrument to support Ukraine’s recovery, reconstruction, and modernization while supporting its efforts to implement reforms on the way to EU accession.

The creation of the Ukraine Facility fund should combine EU budget support for Ukraine into a single instrument that will provide consistent, predictable, and flexible support for four years.

At the same time, the approved negotiating mandate does not include issues related to the budget, especially regarding the total amount of funding and the share of grants and loans. These issues will be determined by the outcome of negotiations regarding the mid-term review of the EU’s multi-annual financial budget program for 2021-2027.

Hungary did not block the decision this time, and the the Ukrainian fund should be given final approval on February 1 at the EU summit. If Hungary continues to block the €50B package, the rest of the EU countries are preparing a backup plan worth up to €20B.