REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the progress towards achieving the objectives of the Regulation (EU) 2024/792 of the European Parliament and of the Council of 29 February 2024 establishing the Ukraine Facility
Date: 2025-09-09
Institutions: Directorate-General for Enlargement and Eastern Neighbourhood, European Commission
Subjects: EU aid, European integration, European neighbourhood policy, Ukraine, accession to the European Union, economic reconstruction, economic reform, investment, investment aid, macro-financial assistance

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 9.9.2025  COM(2025) 464 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the progress towards achieving the objectives of the Regulation (EU) 2024/792 of the European Parliament and of the Council of 29 February 2024 establishing the Ukraine Facility  
 
 
1. Introduction 

The  Ukraine  Facility  (the  Facility),  established  by  Regulation  (EU)  2024/792,  is  a  key 
instrument of the European Union’s strategy to address the scale and complexity of challenges 
facing Ukraine in the wake of Russia’s continued war of aggression. Pooling the EU’s budget 
support  to  Ukraine  into  a  single  support  mechanism,  the  Facility  aims  to  provide  EUR 50 
billion  in  coherent,  predictable  and  flexible  financing  for  Ukraine  in  2024-2027.  The  main 
objectives  of  the  Facility  include  supporting  Ukraine’s  financing  needs  and  reconstruction, 
mobilising investments and promoting reforms needed to become a member of the EU. 

The Facility represents a profound commitment by the EU to strengthen Ukraine’s resilience 
and  capacity  to  withstand  external  threats,  foster  its  recovery  and  facilitate  its  path  towards 
sustainable development and EU membership. The Facility is also a strategic investment in a 
strong, economically viable Ukraine, which is crucial for the EU’s stability and for countering 
the destabilising influence of Russia. 

The Facility is an instrument that includes three main pillars. 

•  Pillar I: the Ukraine Plan sets out Ukraine’s vision for its recovery, reconstruction and 
modernisation, and the reforms planned as part of its EU accession process from 2024-
2027.  Under  the  plan,  up  to  EUR 38.3  billion  in  loans  and  grants  are  to  be  made 
available  to  Ukraine  once  it  has  met  the  conditions  agreed  between  the  EU  and 
Ukraine. 

•  Pillar  II:  the  Ukraine  Investment  Framework  (UIF)  supports  public  investments, 
private  sector  direct  operations  and  intermediated  equity  operations.  It  enables  EU-
based  private  companies  to  play  a  central  role  in  investing  in  the  reconstruction  of 
Ukraine’s infrastructure, energy sector and key industries. These investments will help 
Ukraine  to  rebuild  a  modern  and  resilient  economy  while  generating  economic 
benefits for EU businesses. 

•  Pillar  III:  the  third  pillar  focuses  on  providing  technical  assistance  and  support 
measures  to  facilitate  Ukraine’s  alignment  with  EU  laws  and  regulations.  This 
includes  capacity-building  initiatives  (including  civil  society  and  organisations,  local 
and regional authorities) and assistance to Ukraine in implementing reforms necessary 
for EU membership. 

One  year  into  implementing  the  Facility,  this  report  assesses  in  detail  progress  made  on 
each  of  the  three  pillars.  It  reports  on  the  progress  in  reaching  the  targets  included  in  the 
Ukraine Facility Regulation and provides examples of key achievements. It also describes the 
management and control system set up by Ukraine, and the measures to ensure the protection 
of  the  EU’s  financial  interests  as  well  as  the  first  Ukraine  Facility  Dialogue  held  with  the 
European Parliament. 

investments  which  will  contribute 

The  Facility,  despite  being  still  at  an  early  stage  of  its  implementation,  has  already 
demonstrated  its  ability  to  deliver  crucial  support  for  Ukraine  while  promoting  the  reforms 
to  Ukraine’s  recovery,  reconstruction  and 
and 
modernisation.  It  remains  the  main  tool  through  which  the  EU  can  provide  medium-term 
support to the country and contribute to the mutually reinforcing economic reconstruction and 
alignment with the EU. The successful implementation during 2024 confirms the commitment 
of the EU and Ukraine to this path. 

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In its first year of implementation, the Facility has mobilised EUR 19.6 billion in EU support 
to  Ukraine,  of  which  EUR 16.1  billion  under  the  Ukraine  Plan.  The  Facility  has  also 
contributed to one of the largest foreign investments in Ukraine since its independence, which 
aims to modernise and expand Ukraine’s telecom infrastructure. 

The  implementation  of  the  Ukraine  Investment  Framework  is  also  proceeding  at  a 
remarkable speed. The Commission announced the signature of EUR 1.4 billion contributions 
in  EU  guarantees  and  grants  with  partner  financial  institutions,  which  have  a  potential  to 
unlock EUR 6 billion in investments in reconstruction and modernisation areas such as energy 
and  municipal  infrastructure.  Several  operations  have  already  materialised  in  Ukraine  since 
the conclusion of these agreements. Under Pillar III, the Technical Cooperation Facility for 
Ukraine 2024 was established and implemented smoothly. 

2. State of play on the implementation of the Facility 

2.a. Pillar I – Ukraine Plan 

The Ukraine Plan,  under the first  pillar of the Facility, sets  out the  reform and investment 
strategy  for  the  country  in  2024-2027.  The  Plan  outlines  the  government’s  vision  for 
reconstruction, modernisation and the reforms, in the sectors with the largest growth potential, 
as part of its EU accession process. The Plan was developed by the Government of Ukraine, 
following  consultation  with  Ukraine’s  Parliament,  the Verkhovna  Rada,  and  Ukrainian  civil 
society, and submitted to the Commission on 20 March 2024. Following a positive assessment 
by the Commission1, the Council adopted an implementing decision on 14 May 20242. 

The  Plan  addresses  improvements  in  public  administration  with  an  emphasis  on  good 
governance, the green transition, adherence to the rule of law and the fight against corruption 
and fraud. 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 decentralisation. 

Figure 1: Chapters of the Ukraine Plan 

The Council Implementing Decision on the approval of the Commission’s positive assessment 
of  the  Ukraine  Plan  set  out  a  timetable  with  conditions  (i.e.  qualitative  and  quantitative 

1 COM(2024) 172 final. 
2 Council Implementing Decision (EU) 2024/1447. 

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indicators)  to  be  met  by  Ukraine  for  each  quarter,  until  Q4 2027.  These  conditions  reflect 
progress made on the investments and reforms proposed by Ukraine in the Plan. 

The  Commission  assessed  that  reforms  and  investments  in  the  Ukraine  Plan  have  a 
significant potential to boost growth, sustain macroeconomic stability, improve the fiscal 
situation and reinforce Ukraine’s EU accession path. When the Plan was assessed in April 
2024, it was estimated that Ukraine’s GDP would increase by 6.2% by 2027 and by 14.2% by 
2040, if all proposed reforms and investments  were fully implemented. The implementation 
of the Plan could also lead to a debt reduction of about 10 percentage points of GDP by 2033 
compared to an alternative scenario without the Facility. 

Up to EUR 38.3 billion in loans and grants are allocated under Pillar I of the Facility (as set 
out in Figure 2 below) to help Ukraine close the fiscal gap and to support the implementation 
of the reforms and investments. 

All payments under the Facility are conditional on Ukraine continuing to uphold and respect 
effective democratic mechanisms, including a multi-party parliamentary system and the rule 
of law, and to guarantee respect for human rights, including the rights of people belonging to 
minorities. 

Figure  2:  Pillar  I  of  the  Ukraine  Facility  –  Indicative  commitments  by  year  in  EUR 
billion 

Payments under Pillar I of the Facility 

The Ukraine Plan identifies 69 reforms and 10 investments steps, or indicators, broken down 
into 146 qualitative and quantitative steps (the division of reforms per year are illustrated in 
Figure  3).  In  the  light  of  Ukraine’s  macroeconomic  situation  and  debt  sustainability,  the 
Ukraine  Plan  financing  is  frontloaded  in  the  first  and  second  year  of  implementation.  This 
frontloading is also reflected in the number of reforms to be completed. 

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Figure 3: Payment Profile: Reforms & Investments over time 

On 20 March 2024, the Commission disbursed the first EUR 4.5 billion in exceptional bridge 
financing to provide much needed liquidity to Ukraine. A second EUR 1.5 billion instalment 
in  exceptional  bridge financing  was  disbursed on 24 April. This  followed  the Commission’s 
positive  assessment  that  the  policy  conditions  set  out  in  a  Memorandum  of  Understanding 
(MoU) signed by Ukraine and the Commission on 13 March have been met. The Commission 
also  gave  a  positive  assessment  on  the  precondition  to  uphold  effective  democratic 
mechanisms having been met. The bridge financing covered five policy conditions agreed in 
the MoU, and also included in the Ukraine Plan as submitted by Ukraine to the Commission. 

1.  Establish a Selection Commission on Conducting Competition to the High Council of 

Justice Service of Disciplinary Inspectors. 

2.  Adopt an Action Plan addressing the risks identified in the National Risk Assessment. 
3.  Adopt a National Revenue Strategy for 2024-2030. 
4.  Adopt procedures for the allocation of state budget for the creation of industrial parks. 
5.  Implement  automatic  data  transfer  between  the  State  Land  Cadastre  and  the  State 

Register of Property Rights on Real Estate. 

the  Commission  disbursed  EUR 1.9  billion 

On  27 June, 
in  pre-financing,  which 
corresponded  to  7%  of  the  loan  support  that  Ukraine  was  eligible  to  receive,  to  support  the 
implementation  of the Plan. For the pre-financing to  be disbursed, a  Framework Agreement 
was  ratified  by  the  Verkhovna  Rada  on  6 June  and  signed  by  the  President  of  Ukraine  on 
19 June, and a loan agreement was signed on 24 June. 

Following  the  payment  request  by  Ukraine  on  9 July  and  a  positive  assessment  by  the 
Commission on 18 July, as well as the approval by the Council on 6 August, the first Ukraine 
Plan payment of nearly EUR 4.2 billion was disbursed on 13 August. Of the total amount, 
EUR 1.5  billion  was  provided  in  the  form  of  non-repayable  financial  support  and  over 
EUR 2.6  billion  was  disbursed  in  the  form  of  loans.  The  Commission  assessed  that  the 

5 

 
 
 
government had satisfactorily met the nine reform indicators or steps linked to the first regular 
payment in the plan3. 

These nine steps were implemented in Q2 2024: 

Public Financial Management  

1.  The adoption of the plan for the digitalisation of the State Customs Service. 
2.  The approval of the Budget Declaration for 2025-2027. 
3.  The  adoption  of  the  Action  plan  for  the  implementation  of  the  Roadmap  for 

reforming public investment management. 

Fight against corruption and money laundering 

4.  The appointment of a new head of the National Agency on Corruption Prevention. 

Management of public assets and business environment 

5.  The entry into force of the legislation to improve corporate governance standards 

of state-owned enterprises, taking into account international standards. 

6.  The entry into force of the law revising the  legal basis of the Economic Security 

Bureau of Ukraine. 

Energy and agri-food sector 

7.  The adoption of the Integrated National Energy and Climate Plan. 
8.  The Adoption of the Strategy for thermal modernisation of buildings until 2050. 
9.  The Action Plan and the adoption of the strategic document on Mine Action for the 

period up to 2033. 

Following the Commission’s positive assessment4 of Ukraine’s 10 October payment request, 
and the approval of the Council, a Council Implementing Decision was adopted. This allowed 
for  the  disbursement  of  the  second  Ukraine  Plan  payment  of  nearly  EUR 4.1  billion  on 
18 December.  Of  this  total,  EUR 1.5  billion  was  provided  in  the  form  of  non-repayable 
financial support and over EUR 2.5 billion was issued in the form of loans. 

The  Commission’s  positive  assessment  was  the  result  of  Ukraine  meeting  the  required  nine 
steps by Q3 2024. 

Fight against corruption and money laundering 

1.  The increase in manpower of the Specialized Anti-Corruption Prosecutor’s Office 

(SAPO). 

2.  The amendment of the Criminal Code and the Criminal Procedure Code. 
3.  The  adoption  of  the  Action  Plan  for  the  implementation  of  the  Asset  Recovery 

Strategy for 2023-2027. 

Human capital 

4.  The adoption of the Demographic Strategy of Ukraine for the Period up to 2040. 

3 COM(2024) 321 final. 
4 COM(2024) 544 final. 

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Business environment and regional policies 

5.  The adoption of the Action Plan on Deregulation and Improvement of the Business 

Climate. 

6.  The amendment of the State Strategy for Regional Development for 2021-2027. 

Energy sector and environment 

7.  The  entry into force of the secondary legislation  of the Regulation  on Wholesale 

Energy Market Integrity and Transparency law. 

8.  The  entry  into  force  of  the  legislation  on  prevention,  reduction,  and  control  of 

industrial pollution. 

9.  The  development  of  a  Concept  Note  defining  the  scope  of  derogations  from  the 
Environmental Impact Assessment and Strategic Environmental Assessment rules. 

2.a.i. Recipients of funds under the Ukraine Plan 

Article 27 of  the  Ukraine Facility Regulation  provides that Ukraine  must publish  up-to-date 
data on persons and entities, including contractors, receiving amounts of funding exceeding 
the  equivalent  of  EUR 100 000  cumulatively  over  the  period  of  four  years  for  the 
implementation of reforms and investments specified in the Ukraine Plan. 

Ukraine is required to publish this information in a machine-readable format on a webpage, in 
order of total  funds received, having  due regard to  confidentiality  and security, in  particular 
the  protection  of  personal  data.  In  case  of  legal  persons,  this  information  includes  the  full 
legal name and VAT or tax identification number, or another unique identifier established at 
national level. 

In  case  of  natural  persons,  the  first  and  last  name  or  names  of  the  recipient  are  published. 
Moreover,  to  ensure  the  protection  of  the  EU’s  financial  interests  in  line  with Article 35  of 
Ukraine Facility Regulation, Ukraine is also required to ensure the collection of, and access 
to,  adequate  data  on  persons  and  entities  receiving  funding,  including  beneficial  ownership 
information.  This  is  in  compliance  with  EU  data  protection  principles  and  with  applicable 
data  protection  rules.  Notably,  this  requirement  also  includes  information  about  relevant 
(sub)contractors and their beneficial owners. 

Ukraine  has  been  actively  progressing  with  the  work  on  transparency,  implementing  data 
collection requirements into the national legal framework and engaging all relevant authorities 
to ensure comprehensive data collection on final  recipients.  Ukraine is  carrying out work to 
prepare  this  information  in  a  consolidated  database. A  list  of  final  recipients  receiving  over 
EUR 100 000 has been published on the webpage of the Ministry of Economy of Ukraine5. 

Ukraine  is  required  to  comply  with  Article 11  of  the  Ukraine  Facility  Regulation  on  the 
eligibility  of  persons  and  entities  and  the  origin  of  supply  and  materials  when  conducting 
public procurement under the Facility. These requirements are integrated into the Framework 
Agreement between the EU and Ukraine on Specific Arrangements for the Implementation of 
the  Union  Funding  under  the  Ukraine  Facility.  In  line  with  these  requirements,  for  the 
investments  under  Pillar  I,  Ukraine  is  establishing  a  system  of  monitoring  and  control  to 
ensure the requirements are followed and to record and report any procurement making use of 
the exemptions under Article 11 of the Ukraine Facility Regulation. In 2024, the Commission 
did not need to assess any matters regarding public procurement. 

5 https://me.gov.ua/view/d9c13c33-a438-406f-8daf-3145852df99a 

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2.b. 

Pillar II – Ukraine Investment Framework 

The  Ukraine  Investment  Framework  (UIF)  is  the  EU’s  flagship  tool  to  drive  Ukraine’s 
recovery, reconstruction and modernisation. Backed by EUR 9.3 billion, including EUR 7.8 
billion  in  guarantees  and  EUR 1.5  billion  in  blending,  it  aims  to  unlock  up  to  EUR 40 
billion in investment, placing the EU at the centre stage of the international efforts to rebuild 
Ukraine. 

EU guarantees play a critical role in derisking both public and private investments, which is 
essential  for  the  successful  recovery  of  Ukraine.  By  mitigating  financial  risks,  these 
guarantees encourage greater involvement from private sector investors, financial institutions, 
and  development  partners,  all  of  which  are  necessary  to  rebuild  Ukraine’s  economy  and 
infrastructure in the wake of the war. 

Similarly,  EU  blending  mechanisms  combine  grants  with  non-grant  resources,  such  as 
loans, equity, and guarantees from financial institutions, as well as  commercial loans and 
investments.  This  innovative  approach  leverages  public  funds  to  unlock  additional  private 
sector  investment,  creating  a  far-reaching  development  impact.  By  using  blending,  the  EU 
maximises the value of every euro spent, enabling larger, more impactful projects that directly 
contribute to Ukraine’s recovery and long-term resilience. 

The  Ukraine  Investment  Framework  is  at  the heart  of  this  effort,  specifically  designed  to 
help rebuild Ukraine’s critical infrastructure and to kick-start its economy. Key sectors 
such as energy, industry, schools, hospitals, and municipal services are the primary focus, 
aiming to create a more resilient, sustainable, and modern Ukraine. Furthermore, the UIF also 
addresses the needs of small businesses, war-affected populations, and vulnerable groups, 
ensuring that the most affected communities are not left behind. 

As  of  31 December  2024,  three  years  into  Russia’s  war  of  aggression  against  Ukraine,  an 
updated joint Rapid Damage and Needs Assessment (RDNA4) estimates that the total cost 
of  Ukraine’s  reconstruction  and  recovery  will  amount  to  EUR 506  billion  over  the  next 
decade.  This  comprehensive  assessment  underscores  the  enormous  scale  of  the  challenge 
Ukraine faces in rebuilding its economy, infrastructure, and institutions. 

In this context, the Ukraine Investment Framework is essential for bridging the significant 
financing gap for Ukraine’s reconstruction. It provides a structured, coordinated mechanism 
to channel financial resources into the most urgent priority areas identified by the Ukraine 
Plan. The UIF’s targeted support ensures that Ukraine has the necessary resources to address 
critical needs while paving the way for long-term recovery and growth. 

The  UIF  is  also  a  key  driver  of  private  investment  in  Ukraine’s  reconstruction.  By  offering 
de-risking tools, war risk coverage, and mobilising private equity, it creates new financing 
opportunities for both Ukrainian and EU businesses. 

Pillar II is closely interlinked with Ukraine’s reform and accession path.  The investments in 
Ukraine’s economy and infrastructure enabled by the UIF also accelerate its integration into 
the EU Single Market, integrating Ukraine into trans-European infrastructure in energy 
and  transport,  EU  value  chains  and  transposing  EU  standards  and  business  practices. 
By anchoring Ukraine’s economy with the EU’s, the UIF is a strategic engine for advancing 
the EU’s geopolitical and economic standing. 

The  UIF  serves  also  as  a  unique  coordination  platform  for  Ukraine’s  recovery 
architecture.  It  brings  together  the  Government  of  Ukraine,  EU  Member  States,  and  major 
financial  institutions  such  as  the  European  Investment  Bank  (EIB),  the  European  Bank  for 

8 

 
 
Reconstruction  and  Development  (EBRD),  the  World  Bank,  Member  State  Development 
Financial  Institutions,  etc.  to  align  and  deliver  a  joint  operational  response  to  the  Ukraine’s 
recovery and reconstruction needs. 

The  UIF  has  been  set  up  in  record  time.  Following  the  entry  into  force  of  the  Ukraine 
Facility Regulation in March 2024, the first Steering Board of the UIF met in April 2024 and 
endorsed  the  first  set  of  investment  programmes.  In  June  2024  at  the  Ukraine  Recovery 
Conference (URC) in Berlin, the Commission announced the signature of the first investment 
programmes  under  the  UIF  amounting  to  EUR 1.4  billion  in  new  guarantee  and  grant 
agreements to support Ukraine’s recovery and reconstruction. 

These  agreements,  signed  with  several  implementing  partners,  such  as  the  EBRD,  EIB, 
International  Finance  Corporation  (IFC),  Kreditanstalt  für  Wiederaufbau  (KfW)  and  Bank 
Gospodarstwa  Krajowego  (BGK),  consist  of  EUR 1  billion  of  EU  loan  guarantees  and 
EUR 400  million  in  grants. They  benefit  private  companies,  including  small  and  medium-
sized  enterprises,  municipalities  and  Ukrainian  state-owned  enterprises.  The  operations 
support priority sectors such as energy, transport, municipal infrastructure, access to finance 
and war-affected enterprises; and aim to unlock EUR 6 billion in investments. 

Thanks  to  the  Ukraine  Investment  Framework  guarantees,  which  were  instrumental  in 
mitigating  the  investment  risks,  many  operations  have  already  materialised  in  Ukraine  in 
2024. 

•  One  of  the  largest  foreign  investments  in  Ukraine  since  its  independence.  The 
acquisition  of  two  telecom  operators  (Lifecell  and  Datagroup  Volia)  by  a  French 
investor,  creating  a  leading  integrated  operator  with  a  robust  investment  plan  for 
telecommunication  infrastructure  and  improvement  of  digital  connectivity.  This 
transaction  was  co-financed  by  the  International  Finance  Corporation,  backed  by  a 
guarantee from the Ukraine Investment Framework. 

•  A 

landmark  greenfield 

in  renewable  energies,  co-financing 
construction of a new wind farm in the Volyn region with a capacity of 147 MW, co-
financed by the EBRD and IFC with an EU-backed guarantee. 

investment 

•  A critical  lending to  the  City of Kyiv was unlocked by the UIF guarantee, enabling 
emergency liquidity support to the municipal district heating to ensure uninterrupted 
provision of heat over the winter 2024/2025, by guaranteeing a loan provided by the 
EBRD. 

•  A  new  EBRD  loan  to  Nova  Poshta  unlocked  by  the  UIF  guarantee  to  finance  the 
expansion and modernisation of its network of parcel terminals and branches hand 
in hand with measures with a strong social impact, building over 600 bomb shelters, 
running programmes  to  create  job  opportunities  for war-veterans and vulnerable 
women. 

Building on this momentum, in September 2024 a new round of UIF calls for proposals for 
public investments, private sector direct operations and intermediated equity operations 
was launched with an indicative allocation of EUR 2.75 billion. The call will remain open for 
at least a year with intermediate deadlines applying. 

Actions  under  Pillar  II  have  been  implemented  in  compliance  with  the  sourcing  and 
procurement principles set out in Article 11 of Regulation (EU) 2024/792. Top-up guarantee 
agreements  and  blending  operations  have  been  signed  in  June  2024  and  deployed  as  urgent 
measures to address the immediate reconstruction and rehabilitation needs, in particular in the 
energy sector. 

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2.c. 

Pillar III 

Pillar  III  focuses  on  providing  technical  assistance  and  support  measures  to  facilitate 
Ukraine’s alignment with EU laws and regulations. It funds technical cooperation activities 
implemented  over  several  years,  such  as  capacity-building  initiatives,  including  social 
partners, civil society organisations, as well as local and regional authorities, and assistance to 
Ukraine in implementing the reforms necessary for EU accession and to ensure the effective 
utilisation of financial assistance. 

Pillar III also finances the interest rate subsidies for the costs of loans provided under Pillar 
I  of  the  Facility  and  under  previous  macro-financial  assistance.  Moreover,  it  finances  the 
functioning  of  the  Ukraine  Facility Audit  Board  and  supports  other  initiatives  aimed  at 
responding to Russian aggression against Ukraine, including the enforcement of international 
law in relation to crimes committed by Russia on the territory of Ukraine. 

In  2024,  the  first  Annual  Work  Programme  under  Pillar  III  of  the  Facility  was  adopted, 
mobilising more than EUR 488 million. 

2.c.i Implementation of the Technical Cooperation Facility 

The Action ‘Technical Cooperation Facility for Ukraine 2024 (TCF 2024)’ with a committed 
budget  of  approximately  EUR 248  million  is  designed  to  facilitate  Ukraine’s  progressive 
alignment  with  the  EU  acquis  with  a  view  to  future  EU  membership  and  to  support  the 
implementation of the Ukraine Plan. At the same time, it reinforces Ukraine’s resilience and 
capacity to respond to the devastating impacts by Russia’s war of aggression against Ukraine. 

As  a  flexible  and  responsive  tool,  TCF  2024  delivers  tailor-made  assistance,  adapting  to 
Ukraine’s evolving needs. It also supports strategic communication, public diplomacy, and 
engagement with civil society and cultural actors, all essential for reinforcing positive EU 
visibility in Ukraine. 

In  November  2024,  the  TCF  2024  budget  was  increased  by  EUR 105  million,  thanks  to 
EUR 103  million  in  profits  from  immobilised  Russian  assets  and  an  additional  EUR 2 
million  contribution  from  Denmark.  This  amendment  significantly  strengthened  the 
Facility’s  capacity  to  support  priorities  such  as  the  restoration  of  critical  energy 
infrastructure. 

Implementation of TCF 2024 is well underway, with over EUR 136 million, more than 50% 
of  the  total  budget,  already  contracted  in  2024.  These  funds  are  focused  on  key  priorities: 
energy resilience, decentralisation, and support for Ukraine’s EU accession process. 

• 

In  the  energy  sector,  the  EU  is  contributing  to  Ukraine’s  energy  resilience  through 
support to the Ukraine Energy Support Fund, managed by the Energy Community 
Secretariat. This  fund  facilitates  the  delivery  of  emergency  equipment  and  essential 
supplies to stabilise Ukraine’s energy system. 

•  On decentralisation reform, the next phase of the Team Europe flagship initiative 
‘U-LEAD with Europe,’ co-financed by Germany and Denmark, is advancing. Its 
mission is to support transparent, accountable governance at local and regional levels, 
directly contributing to Ukraine’s reconstruction. 

•  To further support EU accession efforts, the newly launched Team Europe Initiative 
‘Ukraine2EU  –  EU  Integration  Support  Programme  for  Ukraine’  (co-funded  by 
Denmark  and  Lithuania)  is  enhancing  the  capacities  of  key  Ukrainian  institutions. 

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This  includes  support  for  the  Ukrainian  Parliament,  the  translation  of  the  EU 
acquis, strategic communication, and coordination of the overall accession process. 

Actions  under  Pillar  III  have  been  implemented  in  compliance  with  the  sourcing  and 
procurement  principles  set  out  in  Article 11  of  Regulation  (EU)  2024/792,  with  priority 
given  to  eligible  countries.  Derogations  have  been  applied  in  line  with  legal  provisions, 
notably to address urgent needs for critical energy equipment, compatibility requirements with 
Ukraine’s existing systems, and crisis conditions on the ground. 

2.c.ii Contribution to accountability mechanisms and financing of the Audit Board 

Russia’s  war  of  aggression  against  Ukraine  has  led  to  widespread  death,  suffering  and 
destruction  across  the  entire  country.  On  14 November  2022,  the  United  Nations  General 
Assembly adopted a resolution recognising the need for the establishment of an international 
mechanism  for  reparation  for  damage,  loss  or  injury  arising  from  Russia’s  internationally 
wrongful  acts  against  Ukraine.  The  EU  has  led  international  efforts  to  hold  Russia 
accountable,  joining  the  Register  of  Damage  Caused  by  the  Aggression  of  the  Russian 
Federation  against  Ukraine  in  May  2023  and  becoming  a  full  Participant  in  July  2024. 
Currently, 43 states and the EU are part of the Register. 

In 2024, the EU contributed about EUR 846 000 to the Enlarged Partial Agreement (EPA) on 
the Register of Damage Caused by the Aggression of the Russian Federation against Ukraine, 
thereby ensuring the EU’s compliance with its financial obligations as a member of the EPA. 

The Register records eligible claims for damage, loss or injury caused to all natural and legal 
persons  concerned  as  well  as  the State  of  Ukraine,  operating  as  a  secure  digital  platform  to 
collect and process evidence. It is set to become part of a future Claims Commission, which 
will assess claims and determine compensation. This initiative is a key step in ensuring Russia 
takes full responsibility for its actions. 

A total of 44 claims forms are planned to cover various types of damages, including property 
destruction,  personal  harm,  and  forced  displacement.  By  the  end  of  2024,  the  Register  had 
received over 13 000 claims and recorded 832 decisions on residential  property destruction, 
with an average claim of EUR 54 000. Work continues on expanding the claims process. 

The  Ukraine  Facility  Audit  Board  was  established  in  June  2024  through  a  Commission 
Implementing  Decision,  which  also  established  its  term  (to  30 June  2028)  and  defined  its 
mission,  composition,  appointment  of  members  and  Chair,  its  Secretariat  and  tasks. About 
EUR 11 million was provided under the Ukraine Facility to support this action. 

The  Audit  Board’s  primary  task  is  to  monitor  the  transparent  and  effective  use  of  up  to 
EUR 50 billion in EU financial assistance to Ukraine between 2024 and 2027. In particular, 
its  mission  is  to  assess  if  Ukraine’s  public  sector  management  and  control  systems  are 
ensuring  that  EU  funds  are  used  in  accordance  with  the  principle  of  sound  financial 
management, such as effectiveness,  economy, efficiency, and transparency, while preventing 
fraud, corruption, conflicts of interest, and other irregularities. 

The Audit Board is based in Brussels with a dedicated Secretariat in Kyiv. Through a call for 
expression of interest, three independent audit board members were selected in 2024, all EU 
citizens with significant experience in auditing and anti-fraud measures. 

2.c.iiii. Borrowing cost and legacy costs 

In June 2024, a financing decision was adopted to cover the annual legacy costs linked to the 
loans  under  the  EU  exceptional  macro-financial  assistance  provided  in  2022  (‘MFA1’  and 

11 

 
 
‘MFA2’)  and  to  contribute  to  the  provisioning  paid  into  the  common  provisioning  fund  in 
relation to such loans, with a total amount of more than EUR 227 million. 

The EU’s exceptional macro-financial assistance of EUR 6 billion disbursed in August 2022 
(MFA1) and between October and December 2022 (MFA2) provided swift and urgent support 
to  the  Ukrainian  budget.  The  EU  may  bear  interest  by  granting  an  interest  rate  subsidy  in 
respect of such loans. 

In February 2024, Ukraine submitted the formal request to receive an interest rate subsidy for 
the charges due in 2024. The requirements underpinning the release of the instalments under 
the EU’s exceptional macro-financial assistance were considered to have been met in 2022. 

3. Progress in implementing the Facility 

3.a. 

Progress on the targets under the Ukraine Facility Regulation 

The Ukraine Facility Regulation sets out three strategic targets focused on small and medium-
sized  enterprises  (SMEs),  the  green  transition,  and  municipalities–three  dimensions  that  are 
essential for Ukraine’s recovery, reconstruction, and long-term modernisation. 

3.a.i Support to Small and Medium-sized Enterprises (Article 28(6)) 

SMEs  are  the  backbone  of  Ukraine’s  economy  and  play  a  critical  role  in  driving  economic 
resilience,  innovation,  and  job  creation.  Recognising  this,  the  Ukraine  Facility  Regulation 
requires  that  at  least  15%  of  EU  guarantees  support  micro,  small,  and  medium-sized 
enterprises (MSMEs), including start-ups. 

In  2024,  the  EU  made  significant  progress  toward  this  objective.  Two  agreements  were 
signed,  securing  up  to  EUR 290  million  in  EU  guarantee  coverage  specifically  targeting 
lending  to  MSMEs.  In  addition,  EUR 20  million  was  mobilised  through  blending 
contributions.  These  initiatives  are  designed  to  unlock  financing  for  small  businesses  and 
support war-affected companies, ensuring they can continue operating and contributing to the 
economy. 

Building  on  this  momentum,  the  EU  will  launch  a  tailored  call  for  proposals  in  2025  to 
provide  further  targeted  support  to  SMEs,  channelled  through  banks  and  financial 
intermediaries.  This  effort  will  prioritise  access  to  finance  for  small  businesses  and  help 
reinforce Ukraine’s private sector during this critical phase of reconstruction. 

3.a.ii Advancing the Green Transition (Article 28(9)) 

The Facility is aligned with the objectives of the European Green Deal and supports Ukraine’s 
shift to a climate-neutral, climate-resilient and environmentally sustainable economy. Pillar I 
of the Facility is expected to comply with the principles of “do no significant harm”, to the 
extent possible in a context of war or post-war recovery and reconstruction. At least 20% of 
investments  made  under  the  Ukraine  Plan  and  the  Ukraine  Investment  Framework  are 
to  climate  change  mitigation  and  adaptation,  biodiversity 
expected 
environmental  protection  including  biodiversity  conservation,  and  the  broader  green 
transition. 

to  contribute 

Under  the  Ukraine  Plan,  at  least  80%  of  investments  in  transport  infrastructure  and  at  least 
60% in energy infrastructure are expected to support green objectives. Most green transition-
related investments under Pillar I are scheduled for implementation by Q4 2027. The overall 

12 

 
 
 
assessment on whether the green transition target has been met will be carried out as part of 
the final payment request due by the end of 2027. 

In addition, the first operations under Pillar II – contracted in mid-2024 – are also expected to 
contribute significantly. These include Ukraine Investment Framework operations focused on 
the  rehabilitation  and  upgrading  of  essential  services  such  as  water  and  electricity 
infrastructure. 

3.a.iii Municipalities (Article 16(4)) 

An  amount  equivalent  to  at  least  20%  of  non-repayable  support  under  Pillar  I  must  be 
allocated  to  the  needs  of  sub-national  authorities.  This  will  be  assessed  on  the  basis  of  the 
Treasury reports justifying that at least this amount has been allocated in the national budget 
for  such  needs,  in  line  with  a  methodology  to  be  prepared  by  Ukraine  and  agreed  with  the 
Commission.  The  first  assessment  of  this  requirement  will  take  place  as  part  of  the  ninth 
payment  request  under  the  Ukraine  Plan,  expected  after  Q2 2026,  which  will  determine 
whether  an  amount  of  at  least  5%  has  been  allocated.  In  the  final  payment  request  of  the 
Ukraine Plan, due by the end of Q4 2027, the full target will be assessed. 

3.b. Contribution to Ukraine’s accession process 

The Facility ties financial support to Ukraine to an ambitious growth reform agenda aimed at 
facilitating structural transformation while supporting Ukraine’s path towards joining the EU. 
The  Ukraine  Plan  is  at  the  heart  of  the  Facility  promoting  Ukraine’s  economic  recovery, 
reconstruction  and  modernisation  while  simultaneously  fostering  alignment  with  the  EU 
acquis.  

To ensure meaningful progress, specific steps have been identified in the Plan, many of which 
are closely  linked to  the EU  acquis in key priority  areas. These steps encompass a range of 
essential measures to bring Ukraine closer to the EU  acquis in the short term, including the 
adoption of legislation which advances implementation of the acquis, the implementation of 
EU  recommendations,  and  the  adoption  of  EU  standards  across  various  sectors.  While  the 
successful  implementation  of  the  Ukraine  Plan  supports  Ukraine’s  alignment  with  the  EU's 
regulatory framework, the fulfilment of reforms under the Facility remains separate from and 
is  without  prejudice  to  the  assessment  of  alignment  to  the  EU  acquis  under  the  ongoing 
accession process. 

Specifically, in the two instalments assessed in 2024, a total of four steps (around 22% of the 
total)  that  also  contribute  to  alignment  to  the  EU  acquis  have  been  completed  (see  Table  1 
below). The sectors involved include decentralisation, energy, and the environment. 

Table 1: Steps of the Ukraine Plan referencing the EU acquis completed in 2024 

Sequential 
number 

Reform 

Name of the step 

Instalment 

9.5 

Reform 3. 

Development and 
implementation of 
regional policy  

Adoption of resolutions to amend 
the State Strategy for Regional 
Development for 2021-2027 

Q3 2024 

13 

 
 
 
Sequential 
number 

Reform 

Name of the step 

Instalment 

10.8 

Reform 3. 

Electricity market 
reform 

15.1  

Reform 1. 

Prevention, reduction 
and control of industrial 
pollution  

Entry into force of the secondary 
legislation on the Regulation on 
Wholesale Energy Market Integrity 
and Transparency (REMIT) law 

Q3 2024 

Entry into force of the legislation 
on prevention, reduction, and 
control of industrial pollution with 
partial application of provisions 

Q3 2024 

15.10 

Reform 5. 
Environmental Impact 
Assessment (EIA) and 
Strategic 
Environmental 
Assessment (SEA)  

Development of a concept note 
defining the scope of deviations 
from the Environmental Impact 
Assessment (EIA) and Strategic 
Environmental Assessment (SEA) 
rules 

Q3 2024 

3.c. Contribution to Ukraine’s fiscal stability through budget support 

Russia’s  full-scale  invasion  has  had  a  disruptive  impact  on  the  Ukrainian  economy,  which 
contracted by nearly 30% in 2022. Both inflation and unemployment increased significantly. 
The general government deficit reached almost 20% of GDP in 2023 due to high spending on 
defence.  Having  lost  access  to  international  financial  markets,  Ukraine  relies  heavily  on 
foreign  assistance.  The  International  Monetary  Fund  has  estimated  the  cumulative  general 
government financing gap up to 2027 at EUR 143 billion. 

In this context, the Ukraine Plan provides direct budget support in the form of non-repayable 
support and highly concessional loans. The total financial support under  Pillar I amounts to 
EUR 38.3  billion.  The  funds  have  been  frontloaded  in  the  first  and  second  years  of  the 
Ukraine Plans’ implementation. 

Direct  budget  support  is  helping  Ukraine  maintain  government  functions  and  deliver 
essential  public  services,  crucial  during  a  period  of  growing  but  insufficient  domestic 
revenue. This support ensures the payment of public salaries, pensions, and the continuation 
of  services  like  education  and  healthcare,  while  also  helping  maintain  macro-financial 
stability by reducing the need for excessive domestic borrowing. 

The  Ukraine  Plan  includes  measures  to  strengthen  fiscal  management,  such  as  restoring 
annual  budget  reviews  and  improving  public  spending  effectiveness.  It  also  focuses  on 
boosting  revenue  mobilisation  and  public  debt  management  for  long-term  financial 
sustainability. In addition, the interest rate subsidy on loans from the EU’s exceptional macro-
financial assistance in 2022 helps Ukraine maintain stability by relieving it of accrued interest 
payments for that year. 

14 

 
 
 
 
3.d. Support to strengthening gender equality 

The implementation of the Facility is guided by the principles of gender equality and women 
empowerment (GEWE), as specified in the Regulation. However, its deployment is too recent 
to report on concrete examples of results for GEWE. 

The Ukraine Plan recalls the principles of inclusivity, gender equality and social cohesion as 
important  cross-cutting  areas  to  be  borne  in  mind.  It  also  highlights  issues  linked  to  human 
capital  and  business  environment.  In  order  to  meet  the  steps  set  out  in  the  Plan,  in  2024, 
Ukraine  adopted  the  new  demographic  development  strategy  up  to  2040.  The  new  law  on 
improving the corporate governance of state-owned enterprises, and the national mine action 
strategy up to 2033 also include measures that encourage gender equality. 

The  Ukraine  Investment  Framework  is  implemented  through  partnerships  with  financial 
institutions aligned with international and EU commitments to GEWE. Support to GEWE is 
also part of the strategic orientations of the UIF. 

Under  Pillar  III,  project-based  assistance  is  channelled  through  a  single  action  called 
Technical  Cooperation  Facility  (TCF).  The  TCF  implements  projects  which  will  integrate 
objectives to strengthen GEWE in line with gender mainstreaming. 

3.e. Highlights 

Despite  its  early  stage  of  implementation,  the  Facility  has  already  accomplished  significant 
results in many areas. 

•  Increased  capacity  to  fight  corruption:  as  part  of  the  reforms  under  the  Ukraine 
Plan, Ukraine has increased the staff of the  Specialized Anti-Corruption Prosecutor’s 
Office  (SAPO),  as  well  as  amended  the  Criminal  Code  and  the  Criminal  Procedure 
Code  to  increase  the  efficiency  of  fighting  corruption.  In  particular,  the  legal 
framework of plea bargaining was significantly improved. 

• 

Improvement  of  corporate  governance  standards:  Ukraine  has  adopted  under  the 
Ukraine  Plan  a  law  to  improve  corporate  governance  standards  in  state-owned 
enterprises  (SOEs),  bringing  them  closer  to  international  standards.  The  new  law 
establishes exclusive powers of the SOEs’ supervisory boards to appoint and dismiss 
CEOs,  and  to  approve  strategic  investment  and  financial  plans  of  SOEs.  It  requires 
that  most  supervisory  board  members  be  independent,  and  it  introduces  an  annual 
evaluation procedure for supervisory boards. 

•  Economic  security  and  fight  against  tax  evasion:  Ukraine  has  adopted  the 
legislation  necessary  to  reform  the  Economic  Security  Bureau  of  Ukraine.  The  new 
law  represents  a  solid  stepping  stone  for  transforming  the  Bureau  into  a  supervisory 
authority that will be more effective in combating tax evasion and economic crime. It 
introduces open and merit-based procedures for recruitment, including for a new Head 
who  will  be  chosen  by  a  commission  of  six  members,  half  of  whom  will  be 
international  experts.  The  law  will  also  help  ensure  the  integrity  and  adequate 
professional competencies of staff. 

•  Energy and climate: Ukraine has adopted its first Framework Climate Law, including 
an objective to reach climate-neutrality by 2050, and its National Energy and Climate 
Plan,  coordinating  and  planning  energy  and  climate  policies  by  2030,  with  specific 
targets including a significant reduction of greenhouse gas emissions and an increased 
share of renewable energy. 

15 

 
 
•  Improved regulatory environment: Ukraine has adopted an Action Plan to ease the 
burden  on  businesses  by  reviewing  and  removing  overlapping  regulations, 
deregulating economic activities and digitising administrative procedures. 

•  Budget  support:  the  regular  disbursements  linked  to  the  full  implementation  of 
reforms under the Plan was vital for Ukraine as it helped sustain essential government 
functions, including paying salaries and providing public services like education and 
healthcare, amid severe revenue shortfalls. It also supported macro-financial stability 
by  limiting  the  need  for  domestic  borrowing  and  laid  the  groundwork  for  long-term 
fiscal sustainability through improved public finance management.  

•  Investments:  the  Ukraine  Investment  Framework  contributed  to  one  of  the  largest 
foreign investments in Ukraine since its independence, the acquisition of two telecom 
operators  (Lifecell  and  Datagroup  Volia)  by  French  and  Ukrainian  investors.  The 
operation, supported by the International Finance Corporation and the European Bank 
for Reconstruction and Development, created a leading integrated operator in Ukraine 
with a robust investment plan for telecommunication infrastructure and improvement 
of  digital  connectivity.  The  investment  aims  to  modernise  and  expand  Ukraine’s 
telecom  infrastructure,  enhancing  network  resilience  and  connectivity  across  the 
country,  including  in  liberated  territories. As  a  result,  mobile  connection  for  over  10 
million people in Ukraine will be restored, modernised and improved and four million 
homes will be equipped with faster internet. 

4. Controls in the implementation of the Facility 

Ukraine’s  public  sector  internal  control  system  provides  effective  monitoring  and  financial 
oversight,  meeting  EU  standards  for  transparency  and  accountability.  The  governance 
structure  includes  the  National  Coordinator  at  the  Ministry  of  Economy  overseeing 
implementation, while the Ministry of Finance and the State Audit Service check compliance 
through audits. The Accounting Chamber supports parliamentary oversight. 

An  initial  audit  for  the  Commission  was  conducted  in  December  2024.  Despite  resource 
constraints, Ukraine’s  experience in managing international financial aid facilitates adequate 
administrative capacity. The Ukraine Plan also  includes reforms  to  improve public financial 
management, prevent fraud, and reduce risks of double funding. These efforts are backed by 
the EU-Ukraine Framework Agreement, which outlines mechanisms for financial supervision, 
fraud prevention, and legal safeguards to protect the EU’s financial interests. 

4.a. Protection of the EU’s financial interests 

In implementing the Facility, the Commission and Ukraine are taking appropriate measures to 
protect  the  EU’s  financial  interests.  The  Commission’s  control  framework  comprises  two 
layers  (i)  ensuring  the  legality  and  regularity  of  quarterly  disbursements  to  Ukraine  under 
Pillar I of the Facility; and (ii) protecting the EU’s financial interests. To ensure legality and 
regularity, the Commission conducts comprehensive preliminary controls before any positive 
assessment  of  a  payment  request  submitted  by  Ukraine.  The  Commission’s  positive 
assessment takes into account the following: 

•  an  assessment  of  the  precondition  set  out  in  Article 5(1)  of  the  Ukraine  Facility 
Regulation  that  Ukraine  continues  to  uphold  and  respect  effective  democratic 
relevant 
mechanisms  and 

into  account 

for  human 

respect 

rights, 

taking 

16 

 
 
 
recommendations of international bodies, such as the Council of Europe and its Venice 
Commission; 

•  an  analysis  of  the  satisfactory  fulfilment  of  the  qualitative  and  quantitative  steps  in 
each  payment  request  based  on  verification  documents  provided  by  Ukraine  in  line 
with the Framework Agreement between the Commission and Ukraine. 

Following  the  disbursements,  the  Commission  will  also  carry  out  risk-based  audits  on  the 
implementation of the Ukraine Plan steps to obtain additional assurance of the veracity of the 
information provided by Ukraine. Before giving the positive assessment of the Ukraine Plan, 
the  Commission  also  assessed  that  the  arrangements  proposed  by  Ukraine  are  expected  to 
effectively ensure an adequate level of protection of the EU’s financial interests. 

4.b. Ukraine’s public sector internal control system 

Ukraine’s public sector internal control system provides effective financial oversight, aligning 
with  EU  standards  for  transparency  and  accountability.  The  National  Coordinator  at  the 
Ministry of Economy oversees implementation, while the Ministry of Finance, supported by 
the State Audit Service, conducts audits and financial checks. 

In  December  2024,  an  initial  systems  audit  for  the  Commission  identified  areas  for 
improvement,  with  recommendations  issued  in  early  205. These  will  be  implemented  under 
the  oversight  of  the  Ukraine  Facility  Audit  Board.  Despite  resource  constraints,  Ukraine’s 
experience in managing international financial aid ensures adequate administrative capacity. 

The  Ukraine  Plan  mandates  reforms  in  public  financial  management  and  investment 
transparency to strengthen audit systems and prevent fraud. A Framework Agreement with the 
EU,  complemented  by  Financing  and  Loan  Agreements,  sets  legally  binding  measures  for 
fund management, fraud prevention, and financial safeguards, ensuring accountability in the 
use of EU support. 

5. Communication and dialogues 

Ukraine Facility Dialogue with the European Parliament 

Under Article 37 of the  Ukraine Facility Regulation,  the Commission  holds a dialogue with 
the European Parliament at least every four months to review progress on all three pillars of 
the Facility. 

The  first  dialogue  took  place  in  December  2024  with  the  Budget  and  Foreign  Affairs 
Committees, covering key issues such as sustaining support beyond 2027, mobilising private 
sector investments, and ensuring financial safeguards. The Commission remains committed to 
informed  on  progress,  challenges,  and 
ongoing  dialogues 
implementation efforts. 

the  Parliament 

to  keep 

6. Conclusions 

In its first year of implementation, the Facility has already started to deliver on its objectives. 
Having mobilised EUR 19.6 billion in 2024, of which EUR 16.1 billion disbursed directly to 
the Ukrainian budget, it has played a decisive role as  one of the main stabilising factors  for 

17 

 
 
 
 
Ukraine  and  tools  available  to  the  EU  to  support  its  recovery,  reconstruction  and 
modernisation. 

The support provided to the state budget under Pillar I of the Facility, the Ukraine Plan, has 
been critical for maintaining Ukraine’s macro-financial stability. All the reform steps set 
out  in  the  Ukraine  Plan  in  2024  have  been  met,  laying  the  groundwork  for  Ukraine’s  long-
term  recovery,  accelerating  the  steps  towards  enlargement,  and  helping  to  bring  Ukraine’s 
institutions  in  line  with  EU  standards.  It  promoted  important  reforms  ranging  from  fight 
against corruption to business environment to green transition and environmental protection. 

It  will  now  be  important  to  keep  up  the  pace  of  implementation  of  the  reforms  and 
investments in the Ukraine Plan. If implemented, they are expected to significantly contribute 
to enhance growth, sustain macroeconomic stability, improve the fiscal situation and reinforce 
Ukraine’s EU accession path. 

Pillar II of the Facility, the Ukraine Investment Framework, plays a key role in mobilising the 
necessary  investments  for  the  reconstruction,  including  under  the  angle  of  green 
reconstruction.  Its  implementation  is  advancing  at  a  record  speed,  with  programmes  for 
EUR 1.4  billion  already  announced  for  signature  and  calls  launched  in  the  first  year  of 
implementation. Operations have already begun to materialise, in particular to support urgent 
needs in areas such as energy, heating services and new investments in greenfield renewables. 
The UIF also serves the EU strategic interests by  providing economic opportunities for EU-
based  businesses  to  invest,  create  trade  opportunities,  and  promote  growth  across  the 
continent. 

Under Pillar III, the Facility provides crucial technical assistance to Ukraine to support its 
progressive  alignment  to  the  EU  acquis  with  a  view  to  future  membership,  as  well  as  the 
implementation of the Ukraine Plan. In addition, project-based assistance, including through 
urgent  repairs  of  energy  infrastructure,  strengthened  the  country’s  resilience  and  capacity  to 
respond to the impacts generated by Russia’s war of aggression against Ukraine. Pillar III also 
subsidised the interest rate charges due to Ukraine in 2024 in relation to loans from previous 
instruments, thus creating fiscal space in the state budget. 

The  implementation  of  the  Facility  takes  place  within  a  strong  monitoring  and  control 
framework, built to ensure that the EU’s financial interests are duly protected. In addition to 
strengthening  Ukraine’s  public  sector  internal  control  system,  this  also  includes  the 
functioning of the Audit Board, which assists the Commission by assessing Ukraine’s public 
sector management and control systems and providing recommendations. 

In  2024,  the  Facility  has  underpinned  the  EU’s  support  for  Ukraine,  demonstrating  its 
commitment  to  support  Ukraine  and  its  people  for  as  long  as  it  takes.  It  was  a  central 
component of the financial assistance provided, while at the same time promoting its reform 
effort.  In  2025,  it  will  continue  to  do  so  by  entering  in  the  full  implementation  phase,  and 
continuing to ensure support for Ukraine’s recovery, reconstruction and modernisation. 

18