Council of EU approves $4.6 billion under Ukraine Facility

The Council of the EU on Aug. 6 gave its written approval to disburse 4.2 billion euros ($4.6 billion) to Kyiv as the first regular payment under the Ukraine Facility.

The four-year Ukraine Facility allocates 33 billion euros ($36 billion) in loans and 17 billion euros ($18 billion) in grants, conditional on the Ukrainian government's carrying out certain reforms.

"With the completion of the written procedure, the Council has adopted an implementing decision today," the Hungarian presidency of the Council said on X.

"This decision supports Ukraine's macro-financial stability and the functioning of its public administration."

The EU approved the Ukraine Facility in February, and the EU Council approved the framework agreement in mid-May, setting out the Ukrainian government's tasks for recovery, reconstruction, and modernization.

"Grateful to the (Council of the EU) for authorizing the first regular payment of 4.2 billion euros under the Ukraine Facility," Ukraine's Finance Minister Serhii Marchenko said.

"Thus, the (EU) budget support in 2024 will reach over 12 billion euros."

Kyiv already received several pre-financing "bridge" tranches under the assistance plan earlier this year.