European Parliament approves €50 billion Ukraine fund in the EU budget

European Parliament approves €50 billion Ukraine Fund in the EU budget. Photo:

MEPs have approved long-term funding for Ukraine, the Strategic Technology Enablers Platform for Europe (STEP) and related major changes to the EU’s multi-annual budget.

MEPs supported a report by MEPs Michael Gahler and Gardiazabal Rubial on the creation of a €50 billion Ukraine Fund in the EU budget for the next four years to help Ukraine, and adopted the proposals of the EU Council in this regard.

According to the press service of the European Parliament, 536 MEPs voted in favour of the decision, 40 voted against, and 39 abstained.

As noted, the creation of the Ukrainian Fund is intended to help Ukraine overcome the social, economic and environmental consequences of Russia’s aggressive war against Ukraine, to promote the reconstruction, restoration and modernisation of Ukraine, and to implement the necessary reforms on its path to EU membership.

The decision establishes the so-called Mechanism for Ukraine, with a total of €50 billion in grants, loans and guarantees, demonstrating that the EU stands by Ukraine and will continue to do so for as long as it takes.

Earlier, during negotiations with EU member states, MEPs achieved key improvements to the Ukraine Mechanism, focusing on increasing transparency and fighting corruption.

Earlier, the European Parliament also agreed on more favourable conditions for the allocation of budget and financial support under the Ukraine Facility programme. A substantial 33% of the resources are earmarked as grants, of which at least 20% are to be used to restore, reconstruct and modernise Ukraine’s subnational authorities, such as regions, cities and local communities. In addition, 20% of the Fund’s investments will be directed to green initiatives, and 15% of support will be directed to small and medium-sized businesses.

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