Ukraine Facility
Description
The Ukraine Facility is a dedicated EU financing instrument designed to support Ukraine’s recovery, reconstruction, and modernization in response to the devastating impact of Russia’s war of aggression. It aims to provide coherent, predictable, and flexible financial assistance from 2024 to 2027, helping Ukraine sustain macro-financial stability, implement key reforms for EU accession, and transition toward a green, digital, and inclusive economy aligned with EU standards.
The Ukraine Facility is structured into three pillars:
Pillar I – Direct financial support to the Ukrainian state through grants and loans.
Pillar II – A Ukraine Investment Framework to facilitate investment.
Pillar III – Technical assistance, expertise for reforms, support for municipalities and civil society, and measures to enforce international law regarding Russia’s war crimes. Interest rate subsidies on loans will also be covered.
Total Budget: Up to €50 billion (2024-2027).
Funding Mechanism: Grants will be mobilized via a new special instrument under the Multiannual Financial Framework (MFF) mid-term review, and loans will be guaranteed similarly to the current Macro Financial Assistance ‘Plus’ (MFA+).
Main Sectors Covered:
- Macroeconomic Stability & Financial Support – Ensuring Ukraine’s economic stability through grants and loans.
- Recovery & Reconstruction – Funding investments in rebuilding infrastructure and the economy.
- Modernization & EU Integration – Supporting reforms and policies that align Ukraine with EU regulations.
- Sustainability & Digitalization – Promoting a greener, more digital, and inclusive economy.
- Governance & Rule of Law – Strengthening institutions, civil society, and enforcing international law.