EU Council approves new tranche of Ukraine Facility amounting to €3.5 billion
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The Council of the European Union greenlit a third payment of roughly €3.5 billion to Ukraine on March 17 within the Ukraine Facility framework, set to disburse soon as grants and loans, the Council announced.

This brings the program’s year-one total to almost €20 billion since its March 2024 launch, designed to ensure Ukraine’s macroeconomic stability and fund its reconstruction, recovery, and modernization.

The Facility, running through 2027, earmarks up to €50 billion, with €32 billion slated for reforms and investments outlined in the Ukraine Plan.

The EU deemed Ukraine compliant with 13 reform preconditions for this tranche, including boosting renewable energy, enhancing the energy regulator’s autonomy, aligning border procedures with EU standards, adopting an agricultural strategy with demining, and advancing critical raw materials policies. These steps align with Ukraine’s four-year roadmap for EU accession.

The Ukraine Facility program entered into force on March 1, 2024. It provides for financing of up to €50 billion in the form of grants and loans to support the recovery, reconstruction and modernization of Ukraine for the period from 2024 to 2027. Of this amount, up to €32 billion is tentatively intended to support reforms and investments identified in the Ukraine Plan.

Previous payouts include €6 billion in interim funding, €1.89 billion in pre-financing, and tranches of €4.2 billion and €4.1 billion, per earlier releases.

The aid follows a lean February when Ukraine received no international tranches, draining NBU reserves by $3 billion.

March saw Canada and the UK kick off G7 loans tied to frozen Russian asset profits.