EU Commission disburses EUR 4.5 bn of bridge financing to Ukraine

March 20, 2024 / 10:31 PM

European Commission President Ursula von der Leyen

Sharjah 24 – KUNA: The European Commission announced Wednesday disbursing EUR 4.5 billion, the beginning of exceptional bridge financing, the Ukraine Facility, to provide liquidity to the country. This is to help finance the functioning of the state, such as public wages, pensions, and the provision of basic public services.

The Commission issued a statement following meeting of Ukrainian Primer Minister Denys Shmyhal with a number of European officials.

Ukraine has also submitted its official Ukraine Plan, that paves the way for regular payments under the Facility conditioned to the reform and investment agenda of Ukraine for the next four years.

Commission President Ursula von der Leyen described this as, "crucial to help Ukraine maintain the functioning of the State in this difficult moment," The Ukraine Facility of up to EUR 50 billion will provide stable and sustainable financing to support Ukraine's recovery, reconstruction, and modernisation, including key reforms necessary on its EU accession track for the period of 2024-2027. This amount is composed of up to EUR 17 billion in grants and up to EUR 33 billion in loans.

If the Commission assesses in April the positive fulfilment of policy conditions and reporting requirements, the Commission will be able to disburse an additional EUR 1.5 billion to Ukraine in bridge financing.

The EU, its member states and European financial institutions have together provided wide-ranging support to Ukraine and its people, amounting to almost EUR 98 billion since the start of Russia's military operation.