Rationale and design of the programme
In the context of Russia’s war of aggression against Ukraine, the Ukraine Facility will bring together the bilateral support provided by the EU to Ukraine, providing predictable medium-term financial support for the recovery, reconstruction and modernisation of Ukraine over the 2024-2027 period.
Russia’s war of aggression has had devastating consequences for Ukraine – for its people, its economy and its infrastructure. While fighting an existential war, Ukraine has also engaged in its EU accession path. Given the scale and complexity of the challenges for both the reconstruction and the reforms underpinning the enlargement process, Ukraine needs the EU’s sustained support in addressing these challenges. Significant and flexible support to the Ukrainian government is needed for it to maintain its functions and provide public services, and to support the recovery, reconstruction and modernisation of the country.
The general objectives of the facility will be to support Ukraine to:
- address the social, economic and environmental consequences of Russia’s war of aggression, thereby contributing to the peaceful recovery, reconstruction, restoration and modernisation of the country and to the post-war recovery of Ukrainian society, including by creating the social and economic conditions for internally displaced persons and persons under temporary protection to return;
- foster social and territorial cohesion, democratic, economic, environmental resilience, progressive integration into the EU and global economy and markets, and upward economic, social and environmental convergence towards EU standards;
- adopt and implement the political, institutional, legal, administrative, social and economic reforms required to align with EU values and to progressively align with EU rules, standards, policies and practices (the acquis) with a view to future EU membership, thereby contributing to mutual stability, security, peace, prosperity and sustainability.
The specific objectives of the facility will include:
- helping to maintain the macrofinancial stability of the country and easing Ukraine’s external and internal financing constraints to ensure the continued functioning of the Ukrainian state;
- rebuilding and modernising infrastructure damaged by the war;
- contributing to demining and other mine action efforts, restoring food production capacities, helping to address social and health challenges, and improving and strengthening the social care systems and their accessibility, in particular for vulnerable groups;
- strengthening security against hybrid threats, such as cyber threats, and strengthening resilience against disinformation, foreign information manipulation and interference;
- fostering the transition to a sustainable, climate-neutral and inclusive economy and a stable investment environment;
- supporting the integration of Ukraine into the internal market; repairing, rebuilding, safeguarding and improving social infrastructure; and strengthening economic and social development and inclusion, with particular attention paid to women and young people;
- promoting science and research, the creative sector and independent media and culture and cultural heritage, including cultural infrastructure; strengthening strategic economic sectors and fostering an institutional framework for investment and competition; supporting sustainable agriculture and rural development, aquaculture and fisheries; reforming Ukraine’s financial and banking sector, improving access to loans and insurance coverage;
- further strengthening the rule of law, democracy, respect for human rights and fundamental freedoms, including through strengthening democratic institutions , and promoting an independent judiciary to support deoligarchisation efforts and strengthen the fight against fraud and all forms of corruption ;
- strengthening the freedom and independence of the media and artistic and academic freedom, along with an enabling environment for civil society; promoting non-discrimination to ensure and strengthen respect for the rights of people belonging to all minorities and promote of gender equality; reinforcing the effectiveness of public administration; encouraging access to information and the participation of civil society in decision-making processes and public scrutiny; and supporting transparency, structural reforms and good governance at all levels;
- developing and strengthening environmental protection and a sustainable and just green transition in all economic sectors, including Ukraine’s transition towards climate neutrality, in accordance with the Paris Agreement; supporting ecological rehabilitation following the environmental damage inflicted by military operations;
- supporting political and administrative decentralisation and local development, especially by supporting meaningful consultation and a level playing field for all levels of government;
- supporting cross-border cooperation with the Member States bordering Ukraine in areas such as trade, environmental protection and the fight against international crime.
The Ukraine Facility provides predictable, flexible and continued support to Ukraine of up to €50 billion in non-repayable support and highly concessional loans for the 2024-2027 period. To obtain the budget support under the first pillar of the facility, Ukraine must fulfil the quantitative and qualitative steps linked to reforms and investments set out in the Ukraine plan.
Under the second pillar, the facility supports public and private investment by providing guarantees and blending operations through implementing partners such as international finance institutions.
The third pillar provides technical assistance to Ukraine and support to civil society through project-based activities.
All support under the facility is conditional upon Ukraine upholding democratic mechanisms, including a multiparty parliamentary system, the rule of law and human rights, including the rights of persons belonging to minorities.
The facility will be implemented either under direct management or under indirect management. EU funding may be provided in any of the forms laid down in Regulation (EU, Euratom) 2018/1046, in particular grants, prizes, procurement, budget support, financial instruments, budgetary guarantees, blending operations and financial assistance.
The facility will provide support to Ukraine under the following three pillars:
a) pillar I: financial support provided to Ukraine for the delivery of reforms and investment to implement the Ukraine plan and to maintain the macrofinancial stability of the country;
b) pillar II: a specific Ukraine investment framework to support investment and provide access to finance;
c) pillar III: technical assistance and related support to Ukraine to design and implement EU accession-related reforms and to foster Ukraine’s administrative capacity, borrowing costs subsidies and provisioning, along with other relevant activities.
Budget
Budget programming (million EUR):
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Financial programming:
- EUR 0.0 million (+ 0%)
compared to the legal basis *
(*) Top-ups pursuant to Article 5 of the multiannual framework regulation are excluded from financial programming in this comparison.
Budget performance – implementation
Multiannual cumulative implementation rate at the end of 2023 (million EUR):
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Annual voted budget implementation (million EUR)(1):
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Contribution to horizontal priorities
Green budgeting
Contribution to green budgeting priorities (million EUR):
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At least 20% of the overall amount corresponding to support under the Ukraine investment framework and to investment under the Ukraine plan will contribute, to the extent possible in a war-torn country, to climate-change mitigation and adaptation; environmental protection, including biodiversity conservation; and the green transition.
Activities under the facility will comply, to the extent possible in a war-torn country, with the climate and environmental standards of the EU. Those activities will mainstream climate-change mitigation and adaptation, environmental protection and biodiversity conservation, and to the extent possible will be compatible with the principle of ‘do no harm’ and with the sustainability-mainstreaming approach underpinning the European Green Deal.
Gender
Contribution to gender equality (million EUR) (*):
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Activities under the facility will mainstream gender equality and non-discrimination, where relevant.
Digital
Contribution to the digital transition (million EUR):
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The medium-term perspective provided by the Ukraine plan through a single instrument will encourage Ukraine to channel investment and reforms towards the transition to a digital economy.
Budget performance – outcomes
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Link to file with complete set of EU core performance indicators