EU reaches partial agreement on new Ukraine support tool
EU ambassadors approved a "partial negotiating mandate" on the proposal to set up the Ukraine Facility, a new instrument aimed at supporting Kyiv's recovery and reform efforts, the Council of the EU announced on Jan. 10.
The facility is meant to pool 50 billion euros ($55 billion) of the EU's long-term funding into a single instrument, ensuring stable support for the period of 2024-2027.
The bloc's leaders have so far failed to approve the funding, as Hungary prevented consensus on the matter during a December summit. The European Council is scheduled to reconvene and discuss the issue on Feb. 1.
The partial negotiating mandate preserves the three key pillars of the Ukraine Facility.
These include a Ukraine Plan, in which Kyiv is expected to present its plans for recovery and modernization, as well as its reform efforts on the path toward EU integration.
The Ukrainian government submitted its plan for approval by the European Commission in late December 2023.
As another pillar, the EU pledges to provide financial aid in the form of "budgetary guarantees and a blend of grants and loans from public and private institutions."
The facility's third pillar encompasses technical and other support to help Ukraine's reforms and alignment with EU legislation.
The approved mandate will not have an impact on the size of the funds and the share of grants and loans provided. These figures will depend on a mid-term revision of the long-term EU budget for the period of 2021-2027.
The EU Council's partial position will serve as grounds for further negotiations between the European Parliament. Following these talks, both institutions must formally adopt the facility.
Read also: What made Ukrainians feel hopeful in 2023
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