EU approves reduced $3.7 billion in Ukraine Facility aid amid reform delays
The EU Council approved a regular tranche payment of 3.2 billion euros ($3.7 billion) under the Ukraine Facility mechanism on Aug. 8, a smaller amount than initially planned due to Kyiv's failure to complete key reforms.
Ukraine had aimed to receive 4.5 billion euros ($5.2 billion) in the fourth installment, the largest so far. However, Kyiv's failure to implement 3 of the 16 required reforms led to European Commission agreeing to provide a reduced amount of funding.
The remaining unfulfilled reforms concern decentralization, judicial appointments to the High Anti-Corruption Court, and a law reforming the Asset Recovery and Management Agency.
The approved 3.2 billion euros serves as a higher amount than was initially approved by EU Commission ambassadors which totaled 3.05 billion euros ($3.5 billion).
European Commission spokesperson Guillaume Mercier said on July 25 that under the EU's partial payment policy, funds tied to unmet benchmarks may be disbursed later if reforms are completed within 12 months.
The Ukraine Facility was approved in February 2024 as a four-year program providing 33 billion euros ($36 billion) in loans and 17 billion euros ($18 billion) in grants to stabilize Ukraine’s economy and support post-war recovery.
The Ukraine Plan serves as the reform roadmap tied to the country's EU accession process, covering governance, rule of law, reconstruction, and economic modernization.
On July 16, European Commission President Ursula von der Leyen said that the EU intends to allocate an additional 100 billion euros ($115 billion) for Ukraine from its long-term 2028–2034 budget, doubling the current Ukraine Facility budget.
