European Commission approves $53 billion reform plan for Ukraine

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The European Commission said on April 15 that it had approved the Ukraine Plan, a reform and investment strategy for the next four years.

Under the plan, Ukraine will receive "regular and predictable" support under the EU's up to €50 billion ($53 billion) Ukraine Facility, the statement said.

The EU approved the financial aid package for Ukraine in February, allocating two-thirds of the amount in loans and one-third in grants. Ukraine has agreed to implement various reforms as part of the conditions for receiving the funds.

Prime Minister Denys Shmyhal submitted the Ukraine Facility Plan to European Commission President Ursula von der Leyen on March 20.

"Ukraine's strategy for reforms and investments offers a solid basis to rebuild a more modern and prosperous Ukraine, on its path towards the EU," von der Leyen said.

"With today's proposal, we showcase once again that Europe stands with Ukraine for as long as it takes, and that we are ready to deliver much-needed financial support."

Following the Commission's approval of the Ukraine Plan, the member states have one month to adopt the Council Implementing Decision. After that, the Commission will be able to disburse up to €1.89 billion ($2 billion) in pre-financing until regular disbursements begin.

Regular payments from 2024 till 2027 will be made on the condition of implementation of the reform and investment steps set out in the annex of the Council Implementing Decision.

"Financial support under the Ukraine Plan will be made available under the precondition that Ukraine continues to uphold and respect effective democratic mechanisms," the statement read.

The Ukraine Plan identifies 69 reforms and 10 investments, broken down into 146 qualitative and quantitative indicators.

The reforms proposed under the plan cover 15 areas, including energy, agriculture, transport, the green and digital transition, human capital, as well as state-owned enterprises, the business environment, public finances, and decentralization.

Ukraine Plan also aims to help Ukraine run its administration, cover salaries and pensions, and support recovery reconstruction while Russia's full-scale invasion continues. The plan provides guidance on Ukraine's recovery and reconstruction as well.

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