EU provides Ukraine with 3 major aid tranches in 2024

Ukraine receives another $1.6 billion of financial aid from the European Union. The country hopes to secure an additional $10.7 billion later this year

Since Russia invaded in February 2022, the European Union has contributed 31 billion euros ($33.16 billion) to Ukraine’s budget financing.

The United States, having authorized substantial funding in a recent aid package for Ukraine, is also a noteworthy contributor.

Finance Minister Serhiy Marchenko emphasized that international support is crucial for guaranteeing macroeconomic stability and establishing a solid basis for economic expansion.

Ukraine’s budget deficit of $37 billion this year shows that it heavily depends on financial assistance from its Western allies to fund its social and humanitarian expenditures.

Kyiv allocates most of its state revenues toward financing its defense endeavors as its military competes against a more substantial and better-equipped Russian army.

Yulia Svyrydenko, the First Deputy Prime Minister, anticipated the EU’s 50 billion euros  Ukraine Facility lending program to be officially approved. The government also expressed hope that it will receive three additional tranches of funding this year.

“In fact, we are one step away from the launch of the program and full regular funding under the program,” said Svyrydenko.

According to her statement, once the final approval is granted, Kyiv will be eligible to receive 1.89 billion euros in June, followed by two additional installments totaling approximately 4 billion euros in September and November.

Ukraine must implement various reforms to receive the tranches and fulfill additional program indicators.

The steps encompass initiatives to enhance transparency, combat corruption, improve the business climate, and align the country’s legislation with the European Union’s.

Source: Reuters