European Commission Approves €4.1 Billion Allocation to Ukraine

The European Commission has approved an allocation of nearly 4.1 billion euros to Ukraine as part of the first pillar of the country facility, bringing the total funding under this mechanism to 16.1 billion euros. The funds are intended to support Ukraine's ongoing reforms and recovery efforts amid the ongoing challenges it faces.

The Council of the EU confirmed that Ukraine has successfully met the nine reform benchmarks required for the release of the second quarterly payment. These benchmarks cover various critical areas, including improvements to the business environment, labor market reforms, regional policy adjustments, energy market regulations, environmental protection measures, and anti-corruption efforts outlined in Ukraine’s reform plan.

Under the country facility, up to 50 billion euros in grants and loans will be provided to Ukraine between 2024 and 2027. This funding aims to aid the country’s reform agenda and its broader economic stability during a challenging period.