Dec. 12 (UPI) — European Union member states have approved nearly $2.7 billion in funding for Ukraine as part of a plan to bolster the war-besieged nation’s recovery, reconstruction and modernization.
The disbursement of the funds was approved Thursday by the European Council, the 27-member block’s top political steering body, to boost Ukraine’s macro-financial stability and support the functioning of its public administration, the council said in a statement.
“I am grateful to the EU for the steadfast support,” Sergii Marchenko, Ukraine’s minister of finance, said in a statement.
“The [Ukraine-EU] partnership ensures our financial stability today and lays the foundation for Ukraine’s shared future in the EU.”
According to Ukraine’s Ministry of Finance, $2.4 billion of the funds will be provided as loans, with the remainder in grants.
It is the sixth regular disbursement of funds from the Ukraine Facility, the EU’s main framework for sustaining Ukraine’s economy, governance and reconstruction amid its defense against Russia’s invasion.
Ukrainian Prime Minister Yulia Svyrydenko said in a statement that this disbursement is “essential” for Ukraine to maintain its “financial resilience” during the war, which began with Russia’s invasion on Feb. 24, 2022.
“We are grateful to our European partners for their consistent support and for continuing the program,” she said.
The council agreed to release the funds as Ukraine successfully completed the eight steps required for the disbursement as well as an outstanding step from the fourth disbursement, according to the council.
The reforms were implemented before the end of the third quarter in the areas of public finance management, the judiciary, the business environment, the banking sector, environmental protection and others, according to the finance ministry.
“The government of Ukraine is working to further improve compliance with Ukraine Facility conditions in the upcoming reporting period,” Svyrydenko added.
The announcement comes a little over a month after the EU approved the fifth disbursement in early November.
“This quick consecutive provision of funds mirrors Ukraine’s speed and commitment to implement reforms aligned with the country’s EU accession goals,” the council said.
The Ukraine Facility entered into force March 1, 2024, to provide Ukraine with up to more than $58 billion in grants and loans through 2027.
To date, Ukraine has received more than $28.6 billion under the program, with $9.7 billion having been received this year alone, according to the Ministry of Finance.
“This is stable and predictable financial support that enables us to maintain budget liquidity and ensure social payments,” Marchenko added in a separate statement.
“Thanks to this support, Ukraine remains on the path of reforms and is moving closer to EU membership.”
The Ukraine Facility is closely linked to advancing the so-called Ukraine Plan that outlines Kyiv’s strategy not only for recovery, reconstruction and modernization but also for implementing reforms to achieve its goal of becoming the 28th member of the EU.
The announcement coincided with the EU and Ukraine agreeing on a 10-point plan on implementing reforms to ensure Kyiv aligns with the bloc and eventually becoming a member.
The EU is Ukraine’s largest backer during its war against Russia, giving it about $80.2 billion since the war began, of which $30.9 billion was given this year.