Copyright kyivpost
The European Council approved a fifth regular payment of more than €1.8 billion ($2.1 billion) to Ukraine under the EU’s €50 billion ($58.3 billion) Ukraine Facility, following Kyiv’s successful completion of nine reform steps and one remaining indicator from the previous tranche. The funds aim to bolster Ukraine’s macro-financial stability and ensure the continued operation of public administration amid ongoing war-related pressures. Payments under the Ukraine Facility are conditional on Ukraine’s performance under the Ukraine Plan — a roadmap for recovery, reconstruction, and modernization that outlines specific reform milestones aligned with the country’s EU accession goals. The Council’s decision follows a European Commission assessment issued on Sept. 29, which confirmed Ukraine’s successful implementation of reforms across the judiciary, anti-corruption and anti–money laundering frameworks, financial markets, the business environment, decentralization, and the energy sector. The assessment also highlighted progress in managing critical raw materials, advancing the green transition, and environmental protection. Ukraine will now await the allocation of these funds to its state budget. The latest disbursement includes €600 million ($692 million) that had been previously withheld due to delays in reforming the Asset Recovery and Management Agency (ARMA). Under EU rules, the funds were released after Ukraine implemented the reform within the allowed one-year grace period. Since the Ukraine Facility entered into force on March 1, 2024, Kyiv has received €6 billion ($7 billion) in bridge financing, €1.89 billion ($2.2 billion) in pre-financing, and four earlier tranches totaling roughly €15 billion ($17.5 billion). Ukraine still faces several pending conditions to unlock the remaining funds in 2026, including implementing digital reforms in enforcement proceedings and verifying judicial integrity declarations. The EU’s decision underscores growing confidence in Ukraine’s institutional progress despite the ongoing war and fiscal challenges.
