What will happen if the EU refuses to increase 2024 support to Ukraine to €18B under the Ukraine Facility program: the parliament’s response.

According to the Ukraine Facility plan, direct budget assistance from the total €50B over four years amounts to €39B. If that amount is divided  into equal parts, you get €9.75B annually. This will not be enough for next year’s needs, so the government and the Ministry of Finance are negotiating to supply Ukraine with €16-18B from this €39B next year. If this does not happen, Ukraine will have to cut funding for state programs, the head of the Budget Committee of the Ukrainian Parliament, Roksolana Pidlasa, reported.

Funding cuts may affect business support programs, capital expenditures may be reduced, and tax redistribution in favor of the state budget may have to continue.

“Discussions on redistributing taxes from local to state budgets will continue,” she said.

The need for international financing for 2024 is $41B. The US is expected to allocate $8.5B, the IMF – $5.4B, Canada – $1.9B, Japan – $4.5B.