EU paves way for EUR 4.2 bn Ukraine support

The Commission gave a positive assessment Wednesday for the EU’s first regular payment under the EU’s Ukraine Facility to support the country’s financial stability and public administration.Once adopted by the EU states, the decision will bring to €12 billion the total EU funding disbursed to Ukraine since the Facility became operational in March this year.

Regular quarterly payments under the Ukraine Facility are conditional on Ukraine meeting pre-agreed requirements, and ensure predictable financial assistance. This first regular payment under the Facility will follow the previous bridge and pre-financing support, and is a testament to the swift implementation of the Ukraine Plan.

Following the assessment of the payment request submitted by Ukraine on 9 July 2024, the Commission has concluded that Ukraine has satisfactorily fulfilled the nine reform indicators linked to the first regular payment in support of the Ukraine Plan, Ukraine’s reform and investment strategy for the next four years. These reforms cover public financial management, governance of state-owned enterprises (SOEs), business environment, energy and demining.

Accomplished steps for this payment request include:

• The Reform of the Economic Security Bureau: Ukraine has adopted the legislation necessary to reform the Economic Security Bureau of Ukraine. The new law represents a solid stepping stone for transforming the Bureau into a supervisory authority that will be more effective in combatting tax evasion and economic crime. It introduces open and merit-based procedures for recruitment, including for a new Head who will be chosen by a commission of six members, half of whom will be international experts. The law will also help ensure the integrity and adequate professional competencies of staff.
• New corporate governance standards for state-owned enterprises (SOEs): Ukraine has adopted legislative changes to bring corporate governance standards closer to international standards, including clearly defining the powers of supervisory boards. These legislative changes will foster a more efficient corporate governance framework, in particular for the largest SOEs.
• Adoption of the National Energy and Climate Plan: Ukraine has adopted its National Energy and Climate Plan, coordinating and planning energy and climate policies by 2030, with specific targets including a significant reduction of greenhouse gas emissions and an increased share of renewable energy.

Source: EUbusiness