EU allocates €1.5 billion to Ukraine in second tranche under Ukraine Facility instrument

The received funds will be used to cover the most important budget expenditures.

"Thank you to the European Commission for the positive assessment of the implementation of five indicators, which is a prerequisite for the allocation of funds...Thank you to Europe for the predicted rhythmic support. This is the key to our stability, successful recovery and creation of economic growth points for the future," Shmyhal said.

This is already the second tranche of financing under the Ukraine Facility instrument. In March, the European Union allocated the first 4.5 billion euros to Ukraine. Currently, the government of Ukraine is waiting for the quick allocation of the third tranche in the amount of 1.89 billion euros.

In total, this year, Ukraine expects 16 billion euros within the framework of the Ukraine Facility program.

What is this program?

The Council of the European Union finally approved the Ukraine Facility multi-year aid package on February 28. The instrument provides for the provision of 50 billion euros to Ukraine in 2024-2027. Of this amount, 39 billion euros will be directed to the state budget to strengthen macro-financial stability. The rest is a special investment instrument for covering risks in priority sectors, covering interest on loans, etc.

At the beginning of February, all 27 leaders of the European Union greenlighted this program, although, according to the media, the EU had to make compromises in order to persuade Hungary to do so.

The Ukrainian govenrment, in turn, adopted a plan to fulfill the conditions for receiving this assistance. It includes European approaches to the reform of public administration, to the fight against corruption, to economic and sectoral reforms in various fields: from the energy industry to the agricultural sector. In addition, the document prescribes "transversal directions", such as the "green" transition, digitalization, and European integration.