The EU will provide Ukraine with a €50B, four-year financial support package, but there are conditions.

This commitment will give Ukraine more certainty in its finances and should encourage other allies, primarily the US and Great Britain, to make similar long-term commitments. The money will be used to cover the Ukrainian government’s current costs and will be used for immediate recovery needs.

According to the President of the European Commission, Ursula von der Leyen, it is proposed to reserve the money in the EU’s budget. Ukraine will receive tranches according to a fixed quarterly schedule based on payment requests and after the commission confirms the fulfillment of required conditions at each stage. In the case of non-fulfillment of any condition, the corresponding amount will be deducted from the payment. But after fulfilling the condition, no later than one year after the initial deadline, Ukraine will be able to receive the deducted amount.

Among the conditions: macro-financial stability, budgetary control, and public finance management, as well as sectoral and structural reforms.