Debate: Establishing the Ukraine Facility
Date: MONDAY, 16 OCTOBER 2023
Speaker: Johannes Hahn
Language: EN

The Union has been consistent in its support to Ukraine since the beginning of Russia’s war of aggression. So far, together with our Member States, we have provided more than EUR 80 billion through humanitarian aid, economic and military assistance, as well as support for Ukrainians who have sought refuge in the Union. The EU is committed to continue supporting Ukraine for as long as it takes. This is why, as part of the revision of the EU’s Multiannual Financial Framework, we have proposed a new EUR 50 billion Ukraine Facility aimed at ensuring predictable medium-term support for the country’s recovery and reconstruction. The Facility will be closely tied to key reforms that Ukraine needs to implement on its EU accession track. Support under the Facility will be based on Ukraine’s fulfilment of conditions. The Facility has been designed to enable the Union to provide different forms of support to Ukraine, while ensuring the necessary flexibility to respond to the circumstances on the ground as they might evolve. The Government of Ukraine will need to prepare a plan for recovery, reconstruction and modernisation detailing the reforms and investments it intends to undertake, which are also needed as part of its EU accession process. To ensure predictability of funding, support under the Facility will be provided in line with the progress Ukraine will make in delivering on this plan. We are already working with Ukraine to facilitate preparing the plan. It is important that the support from key donors to Ukraine remains well coordinated and coherent. Only in this way can it be used to the maximum. Since January this year, we are engaging with key donors through the G7 Multi-agency Donor Coordination Platform. We are encouraging other donors to use the future plan as a reference point in providing their assistance. Our proposed Ukraine Facility also includes a robust framework for transparency, audit and control to ensure the protection of EU financial interests. A dedicated Audit Board, consisting of independent members appointed by the Commission, will assist the Commission by reporting on the possible mismanagement of the funds spent to achieve the objective of the Facility and by making recommendations to Ukraine. Honourable Members, the war continues and Ukraine needs support in the form of fresh funding, support that will not risk adding to the country’s debt burden, support to get its economy on track so that in the long run, it will be less dependent on donors and can increasingly stand on its own feet. Support to crowd in private investment and support to keep Ukraine firmly on its accession track with consistent progress on reforms. The Commission is grateful to Parliament, and in particular to the two co-rapporteurs for the speed with which they have advanced on the draft report that will be voted, I understand, tomorrow. It is crucial to reach an agreement before the end of this year to ensure that Ukraine can continue to receive our support already at the beginning of next year, so we hope that the Council will also proceed swiftly so the trilogues could start as soon as possible. The Commission will continue to play its role to ensure that the next steps of the negotiations deliver a balanced and ambitious instrument that can signal the Union’s steadfast support for Ukraine.