European Council approves payment of around three billion euros to Ukraine

Ukraine will soon receive nearly three billion euros as the European Council has approved the eighth regular payment under the EU Instrument for Ukraine, it was announced today on the European Union website.

Funds from the Instrument for Ukraine are intended to strengthen macro-financial stability, recovery and modernization of Ukraine, maintain the functioning of public administration, and support the country’s reform efforts.

The package includes 800 million euros, which are being provided for the first time as a loan to support Ukraine.

“The payment approved today reflects the fact that Ukraine has successfully fulfilled ten planned steps… – 84 out of 95 envisaged by the Plan, which constitutes approximately 88 percent of the steps that have so far come due for implementation,” the statement said.

The Council also amended the Plan for Ukraine today to include a voluntary financial contribution from Norway of 1,000,000,000 Norwegian kroner (about 92 million euros) in non-repayable support.

The Instrument for Ukraine enables EU member states, third countries, and international organizations to make voluntary contributions.

Sweden has also made additional voluntary contributions of more than 253 million euros over the past year.

Norway is the first country outside the EU to contribute to the First Pillar of the Instrument for Ukraine (Support to Ukraine through the Plan for Ukraine).

The United Kingdom recently paid more than 17 million euros into the Second Pillar (Investment Framework for Ukraine), the statement said.

The Instrument for Ukraine entered into force on March 1, 2024, and provides more than 50 billion euros in grants and loans to support the recovery, reconstruction, and modernization of Ukraine until 2027.

Of that total amount, more than 40 billion euros are earmarked for reforms and investments defined in the Plan for Ukraine, Ukraine’s roadmap for recovery and EU accession, with payments conditional on meeting the objectives set out in the Plan.

Once this eighth payment is made, Ukraine will have received a total of more than 32 billion euros under the Instrument for Ukraine since mid-2024.