Regulation (EU) 2024/792 establishing the Ukraine Facility

What it is

to establish the Ukraine Facility to provide predictable financial support for Ukraine over the 2024-2027 period. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: Russia’s war of aggression against Ukraine has caused Ukraine damages amounting to more than EUR 270 billion as of 24 February 2023, and reconstruction costs being estimated at EUR 384 billion, as well as a loss of access to financial markets and a significant drop in public revenue, while public expenditure to address the humanitarian situation and to maintain the continuity of State services has increased markedly. The European Parliament adopted by 512 votes to 45, with 63 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council establishing the Ukraine Facility. The issue was referred back to the relevant committee for interinstitutional negotiations. Members considered that the general objectives of the Facility should be to support Ukraine to: - address the social, economic and environmental and psychological consequences of Russia's war of aggression, thereby contributing to the recovery, reconstruction, restoration and modernisation of the country and to the post-war recovery of Ukrainian society; - foster democratic, social, economic and environmental and territorial cohesion and resilience and progressive integration into the Union and global economy and markets and upward economic, social and environmental convergence towards EU standards; - improve access to capital, including through advancing the institutional banking and insurance framework, to strengthen entrepreneurial activity and advanced research and development; - provide additional support for Ukraine in adopting and implementing the political, institutional, legal, administrative, social and economic reforms required, to progressively align to Union rules, values, standards, policies and practices (‘acquis’) with a view to future Union membership, thereby contributing to mutual stability, security, peace, prosperity and sustainability. - provide temporary payment support, including for recurring expenses, as part of macro-economic assistance to ensure fiscal stability and the continued functioning of the Ukrainian State; - strengthen cyber security and defence as well as resilience against disinformation, foreign information manipulation and interference; - foster the transition to a sustainable, climate neutral inclusive economy; - strengthen the rule of law, democracy, the respect of human rights and fundamental freedoms, including through strengthening democratic institutions, in particular the Verkhovna Rada; - create the conditions for Ukrainian Internally Displaced Persons and persons under temporary protection to come back home and get reintegration into the social and economic life of the country. The Commission should guarantee that relevant stakeholders, including the Verkhovna Rada , local and regional authorities, social partners and civil society…

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