EU to provide additional $3.8B aid to Ukraine

ISTANBUL

The Council of the EU has approved an additional €3.5 billion ($3.8 billion) worth of financial aid in non-repayable grants and loans to Ukraine, according to a press release by the European Council on Monday.

"The main objective of the Facility is to support Ukraine's macro-financial stability and recovery, reconstruction and modernization," it said.

The aid is the third payment under the Ukraine Facility, which the country will have received close to €20 billion under the Ukraine Facility since its entry into force a year ago.

"The Council concluded today that Ukraine had satisfied the necessary conditions laid down in the Ukraine Plan in order to receive a third disbursement from the Ukraine Facility," it noted.

The statement said that Ukraine has “successfully demonstrated” that it has implemented 13 different steps to receive the fund which include, passing reforms to increase the use of renewable energy; increasing the autonomy of the energy regulator; simplifying border-crossing procedures in line with EU standards; adopting a strategy for agriculture and rural development (including the removal of land mines from agricultural areas); and continuing work on listing its strategic and critical raw materials.

"The Ukraine Plan sets out Ukraine’s intentions regarding the recovery, reconstruction and modernization of the country, and a timetable for the reforms it plans to undertake as part of its EU accession process in the next four years," it added.

The Ukraine Facility plan, which entered into force on March 1, 2024, provides up to €50 billion of stable financing, in grants and loans, to support Ukraine's recovery, reconstruction, and modernization for the period 2024 to 2027.