EU approves 1.8 billion euros for Ukraine under long-term funding plan
The Council of the EU approved on Nov. 4 the fifth tranche of the Ukraine Facility funding in the amount of 1.8 billion euros ($2.1 billion), including some of the money withheld during the previous payment.
"This amount reflects Ukraine's successful completion of nine steps required for the fifth disbursement, as well as one outstanding step from the fourth disbursement," the official statement read.
The Ukraine Facility allocates 50 billion euros ($58 billion) in loans and grants to support Ukraine's post-war recovery and modernization between 2024 and 2027.
The disbursment of 32 billion euros ($37 billion) is tied to reforms Kyiv has pledged to carry out in accordance with the Ukraine Plan.
The fourth tranche, disbursed in August, was reduced from 4.5 billion euros ($5.2 billion) to 3.2 billion euros ($3.7 billion) after Ukraine failed to complete three of the required reforms.
A payment for an uncompleted step from the last tranche — a reform of ARMA, the state asset management agency — was included in the fifth payment.
As European Pravda reports, Ukraine was originally set to receive 2 billion euros ($2.3 billion) in the fifth tranche. The EU withheld some of the money until Ukraine adopts two additional judicial reforms.
If the reforms are not implemented by mid-2026, the funds may be lost.
Since its introduction in March 2024, the Ukraine Facility has provided Ukraine with 22.89 billion euros ($26 billion) in macro-financial support, excluding the most recent tranche.
External funding is increasingly crucial for Ukraine as it faces mounting war costs and a substantial budget shortfall.
Seeking to bolster the country's financial stability amid the Russian invasion, the European Commission proposed a 140 billion euros ($160 billion) "reparations loan" covered by frozen Russian assets.
Belgium, a country where the financial company holding much of the assets is based, has been blocking the loan, which could reportedly also threaten Ukraine's funding under the International Monetary Fund (IMF) program.
Tim Zadorozhnyy
