The EU has created a new fund to support Ukraine: where will the money from Europe go?

European Union flag. Photo:

The EU Council has finally approved aid to Ukraine worth 50 billion euros. This was reported on the official website of the department. This decision was made during a plenary meeting of the legislative body of the European Union. On February 1, 2024, EU countries overcame the resistance of Budapest and reached an agreement on macro-financial assistance to Ukraine. The program is designed for four years, FREEDOM reports.

Of the 50 billion euros, 39 billion euros are direct budget support; 8 billion euros – an investment instrument to cover risks; 3 billion euros – technical support, including to cover interest on loans. Funding is designed for the period from 2024 to 2027. Under its terms, Ukraine will receive tranches on a fixed quarterly schedule.

“Parliament’s decision to agree to revise the budget closes a specific procedure related to the preparation of assistance for Ukraine. The 50 billion euros that the heads of state and government spoke about was a preliminary decision, and today the parliament’s decision closes this procedure. In other words, parliament opens the possibility of transferring this money to Ukraine,” says Member of the European Parliament Jan Olbricht.

At the beginning of February 2024, the EU Council and the European Parliament reached a preliminary agreement on the creation of a new single specialized fund for support – the Ukraine Facility. The package of measures will be aimed at restoring and promoting reforms on the path to Ukraine’s membership in the EU.

“We do not question whether Ukraine needs money. Why? Because Ukraine is also fighting for us, defending our world based on law,” said Johannes Hahn, European Commissioner for Budget and Governance.

The decision of the European Parliament to create a financial instrument was welcomed in Kyiv. As stated in the Cabinet of Ministers of Ukraine, most of the funds that Kyiv will receive from the European Union will be sent to support the country’s state budget.

As reported on the website of the European Parliament, after completing all the necessary procedures, the first tranche from the Ukrainian Fund should arrive in Ukraine in March. We are talking about an amount of 4.5 billion euros. The European Union will continue to financially support Ukraine. And also to supply weapons, ammunition and air defense systems, stressed the President of the European Commission Ursula von der Leyen.

“The European Council reaffirmed Europe’s unwavering commitment to supporting Ukraine. We all know that Ukraine is fighting for us, so we will support it with the funding it needs and give it the much-needed predictability it deserves,” said Ursula von der Leyen

The Fund for Ukraine’s funding consists of 33% grants. At the same time, at least 20% will be spent on the restoration and modernization of the country. In addition, 20% of the Fund’s investments will go to the implementation of “green” initiatives, and 15 – to the development of small and medium-sized businesses. Since 24 February 2022, the EU has provided more than €130 billion in assistance programs to Ukraine.

Read also: Volodymyr Zelenskyy and Edi Rama signed the Treaty on Friendship and Cooperation between Ukraine and the Republic of Albania