Regulation (EU) 2024/792 establishing the Ukraine Facility

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Series Details 2024/792
Publication Date 29/02/2023
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Regulation (EU) 2024/792 - adopted by the co-legislators on 29 February 2024 - establishing a dedicated financing instrument to provide support to Ukraine for the period 2024-2027.

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Russia launched a full-scale military invasion of Ukraine in February 2022, with devastating consequences for the country and its people. Months of fighting, shelling and airstrikes resulted in high numbers of civilian casualties, extensive damage to infrastructure and services, and destruction of cities and towns. The European Union (EU) provided wide-ranging support to Ukraine and its people, amounting to €70 billion by May 2023. It also imposed sanctions against Russia.

Due to the scale and complexity of the challenges involving the reconstruction of Ukraine and the country's EU accession, the European Commission has deemed necessary the establishment of a longer-term solution to ensure that funding is well coordinated and used efficiently. This Regulation establishes a new instrument named Ukraine Facility. It lays down its objectives, its financing and budget for the period 2024 to 2027, the form of EU funding under it and the rules for providing such funding.

The Facility provides support to Ukraine under three pillars:

  • Pillar I: Financial support for the delivery of reforms and investments the Ukraine Plan as well to maintain the macro-financial stability of the country;
  • Pillar II: a specific Ukraine Investment Framework, designed to attract private and public investments in Ukraine's recovery and reconstruction;
  • Pillar III: technical assistance and support to design and implement EU accession-related reforms and to foster administrative capacity, borrowing costs subsidies and provisioning, among other activities.

The draft law was adopted by the European Commission on 20 June 2023 alongside the mid-term review of the EU's Multiannual Financial Framework (MFF). The plenary of the European Parliament adopted a negotiating position regarding the proposal on 17 October. National leaders held a discussion on the proposed instrument during a European Council summit held in December 2023, but were not able to reach a political agreement due to a veto by Hungary. The Council of the European Union adopted a partial general approach on 10 January 2024, excluding budgetary considerations negotiated as part of the proposed amendments to the MFF. National leaders reached an agreement on the mid-term review of the MFF on 1 February 2024, and on 6 February the co-legislators agreed on a compromise text for this file.  This was formally endorsed by the Parliament on 27 February and by the Council on 28 February. The Act was signed by the Council of the European Union on 29 February 2024 and published in the Official Journal on the same day.

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Commentary and Analysis
Politico, 19/06/2023: EU budget top-up for Ukraine is a hard sell
EurActiv: Opinion, 20/06/2023: Ukraine’s reconstruction is Europe’s opportunity
Wilson Center: Article, 13/09/2023: Ukraine Facility – The EU’s Chance to Take Leadership of Ukraine’s Economic Recovery
EurActiv: Opinion, 18/09/2023: New European Ukraine Facility has power to derail or accelerate country’s reform agenda
Polish Institute of International Affairs (PISM): Bulletin No 134, 19/09/2023: Ukraine Facility: EU Takes Up New Carrot-and-Stick Instrument
European Centre for Development Policy Management (ECDPM): Brief, 25/09/2023: The Ukraine Facility: Building on Team Europe and the European Investment Bank
European Disability Forum (EDF), 26/09/2023: Ukraine Facility: ensuring equal opportunities for persons with disabilities
European Parliamentary Research Service (EPRS): At a Glance, 11/10/2023: Establishing the Ukraine Facility
European Parliamentary Research Service (EPRS): Briefing, 21/11/2023: Establishing the Ukraine Facility: Financing Ukraine's recovery and its path to EU accession
Jacques Delors Institute (Notre Europe): Infographic, 13/12/2023: The Ukraine Facility
EurActiv: Beyond the Byline Podcast. 12/01/2024: What are Hungary’s conditions for lifting its Ukraine Facility veto?
World Wide Fund for Nature (CEE): Joint Open Letter to the Ukraine Facility trialogue negotiators (23 January 2024)
Politico, 06/02/2024: The EU’s €50B for Ukraine is basically nothing
Bruegel: Newsletter, 12/02/2024: How can the European Union's Ukraine Facility assist Ukraine's accession path?
European Parliamentary Research Service (EPRS): At a Glance, 22/02/2024: Establishing the Ukraine Facility

Politico, 14/06/2023: EU plans up to €72 billion in aid for Ukraine
TVP World, 16/06/2023: EU proposes budget adjustment to assist Ukraine
Reuters, 20/06/2023: EU offers Ukraine 50 billion euros through 2027
Euronews, 20/06/2023: Brussels asks EU countries for more money for Ukraine and to plug budget gaps
The Brussels Times, 20/06/2023: European Commission earmarks €50 billion for Ukraine in adjusted budget proposal
Bloomberg, 20/06/2023: EU Readies €50 Billion Ukraine Package Ahead of Donor Summit
France24, 20/06/2023: EU proposes 50 bn-euro package to support Ukraine
Politico, 21/06/2023: Europe’s new Marshall Plan: The EU makes a bet on rebuilding Ukraine
Euronews, 15/12/2023: Hungary’s Orbán blocks €50bn EU long-term financial support to Ukraine
Reuters, 31/01/2024: Will Western aid plug Ukraine's gaping budget deficit in 2024?
EurActiv, 02/02/2024: How the EU’s Ukraine aid deal was sealed, and what comes next
EurActiv, 06/02/2024: EU negotiators reach deal on Ukraine aid package
Interfax, 29/02/2024: EU gives final approval for four-year 50-bln-euro Ukraine Facility - Shmygal

EUR-LEX: C Series, 29/02/2024: Joint declaration by the European Parliament and the Council on the appropriate budgetary nomenclature for the Ukraine Facility
EUR-LEX: C Series, 29/02/2024: Joint declaration of the European Parliament, the Council and the Commission relating to the exceptional nature of the Ukraine Facility
EUR-LEX: C Series, 29/02/2024: Statements of the Council upon adoption of the Council Regulation (EU) 2024/765 [MFF Revision], to be entered into the minutes of the Council – Statement as regards the financing of the Ukraine Facility
EUR-LEX: COM(2023)338: Proposal for a Regulation on establishing the Ukraine Facility
European Parliament: Legislative Observatory: Procedure File for Proposal on Establishing the Ukraine Facility (2023/0200(COD))
European Parliament: Legislative Train Schedule: Establishing the Ukraine Facility
European Commission: Recovery and reconstruction of Ukraine
General Secretariat of the Council (EU): Policies: Ukraine Facility
European Commission: Press Release, 20/06/2023: Ukraine: Commission proposes to set up a dedicated Facility to support Ukraine's recovery, reconstruction and modernisation
European Commission: Questions and Answers – A new Ukraine Facility (20 June 2023)
Ukrainian Government: News, 12/09/2023: Work done under the Ukraine Facility programme will form the basis for attracting other donors: Yuliia Svyrydenko
Renew Europe EP Group: Newsroom, 05/10/2023: Ukraine Facility: EU funding must be used along with the frozen assets of Russian oligarchs to rebuild the country
Council of Europe (CoE): Office in Ukraine: News & Events, 11/10/2023: Congress supports establishment of the EU’s Ukraine Facility and calls for further decentralisation in the reconstruction process
European Parliament: Press Release, 17/10/2023: A long-term solution for Ukraine’s funding needs
Council of the European Union: Press Release, 10/01/2024: Ukraine Facility: Council agrees on elements of new support mechanism for Ukraine
Ukrainian Government: News, 01/02/2024: European Council backs EUR 50 billion financing for Ukraine, paving way for further approval of Ukraine Facility
Council of the European Union: Press Release, 06/02/2024: Ukraine Facility: Council and Parliament agree on new support mechanism for Ukraine
European Commission: Press Release, 06/02/2024: Commission welcomes political agreement on the up to €50 billion Ukraine Facility
Renew Europe EP Group: Newsroom, 06/02/2024: Renew Europe calls for swift decisions and actions by the EU leaders, who must deliver the promised aid to Ukraine
European Parliament: Press Release, 07/02/2024: Parliament and Council agree on long-term solution for Ukraine’s funding needs
European Parliament: Press Release, 27/02/2024: Parliament approves key budgetary support for Ukraine and the EU
Renew Europe EP Group: Newsroom, 27/02/2024: EU's efforts to support Ukraine must go hand in hand with holding Russia accountable for its crimes
Ukrainian Government: News, 27/02/2024: Government is to approve the Plan for Ukraine Facility in March, says Yuliia Svyrydenko
Council of the European Union: Press Release, 28/02/2024: EU long-term budget for 2021-2027: Council concludes the mid-term revision

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