The Ukraine Facility is the European Union’s financial assistance programme for Ukraine.
During the period of 2024-2027, 50 billion euros from the EU will be allocated to finance the state budget, stimulate investment, and provide technical support in the implementation of the program.
A technical document required to implement the European Union’s financial support program for Ukraine.
The plan provides for the implementation of reforms that will lay the foundation for further economic recovery and development as well as Ukraine’s integration into the EU.
The preparation of the Ukraine Facility Plan was implemented by the Cabinet of Ministers of Ukraine under the coordination of the Ministry of Economy, headed by the First Vice Prime Minister and Minister of Economy Yulia Svyrydenko.
The work on the Plan was carried out in close cooperation with the European Union, as well as through consultations with business, civil society, think tanks, MPs and representatives of the regions. Kyiv School of Economics provided analytical and organisational support in the development of the document.
The reforms in the Ukraine Facility Plan are divided into 3 main blocks: basic reforms, economic reforms, and key sectors.
The plan also has 3 cross-cutting areas, with specific measures in all chapters. These are green transition, digital transformation, and European integration.
Basic reforms that lay the foundation for accelerating economic recovery and strengthening institutional capacity.
Effective public administration is key to the implementation of the Plan. Ukraine needs the institutional capacity to implement the planned reforms and attract large amounts of investment.
Effect: professional civil service without nepotism and corruption.
Sustainable development of the national economy depends on a strong and transparent financial system where the state is able to provide for itself. The first step towards this is to implement effective public financial management.
Effect: reduction of public debt, decrease of the budget deficit, de-shadowing of the economy.
Fair justice and the rule of law are the basis for all participants to follow the rules of the game. The Government’s goal is to create a judicial system that meets European standards of transparency and efficiency.
Effect: less administrative pressure, higher investor confidence in the state, increased investment.
Corruption should not be an obstacle to the country’s economic development. Additional measures in this area will provide a reliable guarantee of security for potential investors, improve the country’s international image and help business development.
Effect: increased budget revenues, improved business climate, higher level of investment.
Reforms needed to develop the economy and improve the welfare of citizens.
The financial sector needs to be healthy, capable, and transparent to provide Ukrainian entrepreneurs with sustainable support, expanding access to financing and attracting additional resources.
Effect: strengthening the resilience of the banking system, better lending conditions for businesses, and increased investor confidence in the sector.
Poor management of state assets leads to budget losses and underinvestment. The government aims to focus on the development of strategic assets and attract additional investments in the public sector.
Effect: reducing pressure on the state budget, attracting additional investments and increasing revenues.
People are the most valuable asset of the country. The government is committed to doing everything possible to ensure that our citizens are able and willing to return home, live and work in Ukraine.
Effect: raising living standards, improving the demographic situation and returning people to Ukraine.
Entrepreneurs are the key beneficiaries of the reforms. The Government’s task is to build a new transparent model of cooperation with business that is focused on business needs. The pace of Ukraine’s economic development directly depends on the success of the private sector.
Effect: growth of foreign and domestic investment, accelerated development of innovative sectors of the economy.
Reconstruction will primarily take place in the regions. It is necessary to strengthen the capacity of the regions, provide them with resources and tools for effective recovery and further development.
Effect: quality management and development, improved quality of life in all regions of Ukraine.
Priority sectors whose rapid development will stimulate broad economic growth.
The priorities are energy security and the transition to low-carbon and renewable energy sources with the continuous development of energy sustainability. This will increase Ukraine’s export potential in European markets and expand opportunities for attracting investment.
Effect: strengthening energy security and sustainability, increasing the share of green energy, reducing environmental impact, and increasing international investors’ confidence in the energy sector.
Transport and logistics are key to export-oriented development. It is necessary to modernize logistics systems and TEN-T networks, bring the railway sector in line with EU standards, and improve port services.
Effect: modernization of Ukraine’s transport sector and closer integration with both the EU and global economies.
Significant potential in production and exports. The main areas of reform and investment should ensure the sustainable development of the sector, increase its competitiveness and adaptation to European standards.
Effect: improved productivity of the agri-food sector, increased exports, new jobs, food sustainability and safety, and promotion of ecological production.
Ukraine has reserves of 22 out of 34 minerals that are considered critical for the EU. Our goal is not to supply raw materials, but to produce final, technological and more expensive products.
Effect: ensuring sustainable development of the critical materials and raw materials sector, increasing its contribution to the national economy, creating new jobs, and strengthening Ukraine’s position in the global market for critical materials and value-added products.
In addition to the key sectors presented in the respective chapters, additional investment areas are described in the Business Environment chapter. Attention is focused on the development of entrepreneurship in general and SMEs in particular, as well as key manufacturing industries.
Financial stimulus
The IT sector paves the way for digital transformation and the development of innovations needed to support other industries. Implementation of reforms in this area will also reduce corruption risks and administrative pressure on businesses.
Effect: Ukraine’s integration into the EU’s Digital Single Market, increased investment potential.
Achieving the climate neutrality goals is a chance to modernize the Ukrainian economy, increase its resource intensity and competitiveness. It entails significant investments in the energy sector, green steel, agriculture and other areas. By implementing these reforms, Ukraine can become a European leader in decarbonization.
Effect: improved protection of public health, increased innovation potential of the economy.
The 69 reforms in the Plan are supported by more than 150 quarterly implementation indicators.
In addition to the reform indicators, the plan includes 16 investment indicators. To fulfill them, it is necessary to allocate funds for the implementation of individual projects – infrastructure development, demining, renewable energy, support for small and medium-sized enterprises, etc.
Funding under the Ukraine Facility will be provided for the implementation of the Plan’s indicators.