HomeNewsDiplomatic NewsEU Council and Parliament agree on $54B Ukraine facility

EU Council and Parliament agree on $54B Ukraine facility


Brussels, 7 February  2024 (TDI): In a landmark development, the European Parliament and the Council of the EU have concluded a preliminary agreement on the Ukraine Facility, allocating a staggering 50 billion euros ($54 billion) to support Ukraine.

This agreement marks a significant milestone in the ongoing efforts to aid Ukraine in the face of Russia’s aggression.

After months of diplomatic hurdles, European leaders reached a consensus on the four-year financing package for Kyiv during a European Council summit on February 1.

The allocated sum, which is part of the Multiannual Financial Framework (MFF), comprises 33 billion euros ($35.5 billion) in loans and 17 billion euros ($18.3 billion) in grants.

Belgian Finance Minister Vincent van Peteghem, leading the EU presidency, stated that the EU stands ready to aid Ukraine for as long as necessary.

Moreover, he highlighted that the Ukraine Facility will enable the EU to provide steady and reliable support to help Ukrainians reconstruct their nation amidst the unprecedented challenges posed by Russia’s aggressive war.

Under the terms of the agreement, Ukraine will be eligible to request a pre-financing payment of up to 7% of the Facility. A significant portion of the funds will be directed towards green investments, with additional resources earmarked for small and medium businesses.

Integral to the implementation of the Ukraine Facility is the Ukraine Plan, a comprehensive reform and recovery proposal drafted by Kyiv. Submitted for approval by the European Commission in late December 2023, the plan will be subject to regular monitoring by the EU.

Minister van Peteghem emphasized that the assistance will also assist Ukraine in pushing forward with necessary reforms and modernization efforts. These efforts are crucial for Ukraine’s progression towards potential future EU membership.

Also Read: Provisional Agreement between Council and European Parliament on ECDC

The European Council’s decision to initiate accession talks with Ukraine during an EU summit in December 2023 underscores the Union’s commitment to strengthening ties with Kyiv. This move represents a significant step towards full-fledged membership since Ukraine’s application in February 2022.

Following the provisional agreement, negotiators will engage in further discussions on the Multiannual Financial Framework. Upon reaching a final agreement, the Facility will be formally published and come into force the next day.

Idrees Khan
Idrees Khan
Muhammad Idrees Khan is an undergraduate student pursuing a BS in Peace and Conflict Studies at the National Defence University Islamabad (NDU). He is passionate about analyzing global conflicts and understanding diplomatic strategies for peace-building. He actively engages in discussions on state security, international diplomacy, and conflict resolution. The writer can be reached at idreesbhittani123@gmail.com

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