The Council of the European Union has approved the fourth tranche of over €3.2 billion to support Ukraine under the Ukraine Facility following satisfactory fulfilment of key conditions and reforms.

Source: EU Council, as reported by European Pravda

Quote: "Ukraine is set to receive over €3.2 billion in funding after the Council adopted a decision on the fourth regular disbursement of support under the EU's Ukraine Facility."

Details: The fourth tranche is over €1 billion less than initially planned because Kyiv has not implemented all promised reforms. However, the amount exceeds the €3.05 billion approved earlier by EU ambassadors.

This funding primarily aims to strengthen Ukraine’s macro-financial stability and support the functioning of the public administration system.

Payments under the Ukraine Facility are closely linked to the Ukraine Plan, which outlines the strategy for Ukraine’s recovery, reconstruction and modernisation, as well as a schedule for implementing reforms aligned with the country’s EU accession goals over the next four years, the Council of the EU noted.

Background:

• On 1 August, the Ukrainian government decided to amend the Ukraine Plan, citing the need to update commitments. The government stated that the Council of the EU is expected to approve the revised plan by the end of September.
• The European Commission has said it is ready to assess Ukraine’s amendments to the Ukraine Plan.
• Since early 2024, the Ukraine Facility, with a declared value of €50 billion, has been the main line of EU financial aid to Ukraine. Starting from the second quarter of 2024, the EU links funding to Ukraine’s reform implementation. Each quarter, Ukraine must meet indicators – specific changes or decisions. To legally confirm readiness, the government documented all steps and deadlines in the Ukraine Plan.
• On 25 July, a European Commission spokesperson told European Pravda that the next Ukraine Facility tranche would be reduced because Kyiv did not implement promised reforms.

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