Ukraine Receives €4.1 Billion from EU for Budget Support Amid Ongoing Reforms

On December 18, 2024, Ukraine's government announced the receipt of a €4.1 billion tranche from the European Union as part of the Ukraine Facility program, which includes a grant of €1.5 billion. The funds are designated for priority needs within the state budget, particularly in social and humanitarian sectors.

Ukrainian Finance Minister Serhiy Marchenko stated that the country successfully secured all planned tranches for the current year, having met nine indicators by the end of the third quarter. The measures implemented focus on enhancing and integrating key areas such as anti-corruption efforts, business environment improvements, labor market reforms, regional policy, energy market adjustments, and environmental protection.

In total, the EU's assistance under the Ukraine Facility for 2024 amounts to €16.2 billion. Danilo Hetmancev, head of the parliamentary finance committee, noted that this financial support creates a safety cushion for Ukraine, preventing the challenges experienced earlier in the year when aid from the U.S. was delayed due to budgetary issues.

Looking ahead, the Ukraine Facility is set to provide approximately €12.5 billion in financial support for 2025. Hetmancev emphasized the importance of completing all 13 required indicators within the next two weeks, with deadlines set for the fourth quarter. These indicators cover a wide range of areas, including digitalization of the State Tax Service, state property policy, reforms in orphanages, market control of non-food products, urban planning, and investment stimulation in renewable energy sources.

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