European Commission approves Ukraine’s €50 billion reform plan

The European Commission has approved the Ukraine’s €50 billion reform plan under the Ukraine Facility mechanism. The Ukraine Plan reform plan was proposed by the Ukrainian government, which outlines the conditions for receiving EUR 50 billion in macro-financial assistance over 2024–2027. The European Commission has reported this in an official statement.

According to the European Commission, the reform plan “effectively meets the objectives of the Ukraine Facility by identifying key reforms and investments that can contribute to sustainable economic growth and attract investment to enhance the country’s growth potential in the medium and long term.”

The EU executive body also adds that the plan is the basis for Ukraine’s reconstruction and contains adequate mechanisms to protect the EU’s financial interests.

After the European Commission’s assessment, the reform plan requires the approval of EU member states, which takes one month. After that, the European Commission will be able to allocate up to €1.89 billion in pre-financing before regular disbursements begin.

Earlier, on March 18, the Ukrainian government approved a reform plan for the Ukraine Facility, which is the basis for providing financial support from the European Union under a four-year program totaling €50 billion.

The Ukraine Plan identifies 69 reforms and 10 investments, broken down into 146 qualitative and quantitative indicators. These reforms cover 15 areas, including energy, agriculture, transport, green and digital transition, human capital, as well as state-owned enterprises, business environment, public finance, and decentralization.

On March 20, the European Commission disbursed the first tranche of the €4.5 billion Ukraine Facility to Ukraine.