EU restores financial aid to Ukraine: €50 billion over four years

The European Council unanimously approved a new financial aid package for Ukraine for 2024-2027, totaling €50 billion, of which €39 billion will be allocated towards ensuring macro-financial stability, announced by European Council President Charles Michel on Thursday, February 1.

"We have a deal. All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget. This locks in steadfast, long-term, predictable funding for Ukraine," he wrote on X (Twitter).

The new Ukraine Facility aid program has been in preparation since June 2023, initially presented by the European Commission. The funds in the form of grants and loans will be provided based on the fulfillment of the Ukraine Plan, supported by a series of conditions and a payment schedule agreed with the European Union.

Under its terms, Ukraine will receive tranches on a fixed quarterly schedule based on payment requests and after the commission verifies the fulfillment of relevant conditions.

If any condition is not met, the commission will deduct the corresponding amount from the payment. These funds will not be lost: Ukraine can receive the deducted amount if it meets the specific condition, but no later than a year after the initial deadline.

The Ukraine Facility program consists of three parts:

→ €39 billion for budget support;
→ €8 billion investment instrument to cover risks;
→ €3 billion for technical support, including covering interest on loans.

Ukraine anticipates the first tranche of €4.5 billion in March.

  • On December 29, the Cabinet of Ministers of Ukraine completed the preparation of the Ukraine Plan, necessary for receiving financial aid from the EU under the Ukraine Facility program.