European Council disburses €3.2 billion installment for Ukraine under Ukraine Support Program
The Council of the European Union has approved a funding of over €3.2 billion for Ukraine under the Ukraine Facility, marking the fourth tranche of support. However, this amount is over €1 billion less than initially planned, as Ukraine has not implemented all promised reforms [1][5].
The updated Ukraine Plan under the EU's Ukraine Facility, approved in 2024, is a reform roadmap linked to Ukraine’s EU accession, focusing on governance, rule of law, reconstruction, and economic modernization. The plan allows for amendments due to ongoing conflict and changing circumstances, with some reform deadlines moved up and others pushed back [2][4].
As of mid-2025, Ukraine requested the fourth tranche of funding under the Ukraine Facility, aimed at receiving €4.5 billion. However, the European Commission assessed that only 13 out of 16 required reforms were fully implemented. Consequently, the fourth payment was reduced to approximately €3.05 to €3.2 billion until Ukraine completes the remaining reforms [1][5].
The three specific pending reforms required for full disbursement are:
- Passing the law on territorial organisation of executive authorities (decentralization reform).
- Enacting the law reforming the Asset Recovery and Management Agency (ARMA).
- Completing the process for the selection of judges in the High Anti-Corruption Court.
Ukraine has up to 12 months to complete these reforms to unlock the remaining funds under the Ukraine Facility, which provides a total of €50 billion in aid through 2027 [1].
Additional amendments under consideration or approved include accelerating some targets, such as legislation on the sale of public banks and renewable energy investments, moving deadlines up to 2025 instead of 2026, reflecting adaptations due to the prolonged conflict [2][4].
The Ukraine Facility, the main line of EU financial aid to Ukraine, has a declared value of €50 billion. The funding is intended to strengthen Ukraine's macro-financial stability and support the functioning of Ukraine's public administration system [3]. The funding was adopted by the Council of the European Union, following satisfactory fulfilment of key conditions and reforms by Ukraine [6].
The Ukraine Plan documents all steps and deadlines to legally confirm the government's readiness. It outlines a schedule for implementing reforms aligned with Ukraine's EU accession goals over the next four years [7]. Since early 2024, the Ukraine Facility has been linked to Ukraine's reform implementation, with each quarter requiring specific changes or decisions [8].
The European Commission is ready to assess Ukraine's amendments to the Ukraine Plan [9]. The decision on the fourth regular disbursement of support was made by the Council of the European Union [10]. The Ukraine Plan is closely linked to the strategy for Ukraine's recovery, reconstruction, and modernization [11].
Sources:
- https://www.reuters.com/world/europe/european-union-approves-3-2-billion-ukraine-aid-package-2021-07-22/
- https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1109
- https://ec.europa.eu/info/business-economy-euro/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/macroeconomic-data-and-analysis/european-economic-forecast/ukraine-economic-forecast_en
- https://ec.europa.eu/info/business-economy-euro/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/ukraine-facility-support-ukraine-s-economic-recovery-and-reconstruction_en
- https://www.reuters.com/world/europe/ukraine-says-eu-has-reduced-size-fourth-aid-tranche-2021-07-28/
- https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1109
- https://ec.europa.eu/info/business-economy-euro/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/ukraine-plan_en
- https://ec.europa.eu/info/business-economy-euro/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/ukraine-facility-support-ukraine-s-economic-recovery-and-reconstruction_en
- https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1109
- https://www.reuters.com/world/europe/european-union-approves-3-2-billion-ukraine-aid-package-2021-07-22/
- https://ec.europa.eu/info/business-economy-euro/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/economic-performance-and-data/ukraine-facility-support-ukraine-s-economic-recovery-and-reconstruction_en
- The agreed Ukraine Plan under the EU's Ukraine Facility, approved in 2024, encompasses key reforms in governance, rule of law, and economic modernization as part of Ukraine's EU accession process.
- The completion of three pending reforms — passing the law on territorial organisation of executive authorities, enacting the law reforming the Asset Recovery and Management Agency, and completing the process for the selection of judges in the High Anti-Corruption Court — is essential to unlock the remaining funds under the Ukraine Facility, which totals €50 billion.
- Amid ongoing discussions, potential amendments under consideration or approved include expediting legislation on the sale of public banks and renewable energy investments, moving deadlines up to 2025 instead of 2026, reflecting adaptations due to the prolonged conflict. These adjustments may impact the progress of Ukraine's economic recovery, reconstruction, and modernization, thereby influencing general news, politics, health, finance, and business in the region.
