The European Parliament has supported the creation of a EUR 50 billion Ukraine Fund for the period 2024-2027 to support Ukraine and implement reforms for the country’s future accession to the European Union.
The relevant resolution was adopted on Tuesday in Strasbourg as part of the European Parliament’s plenary session. “536 deputies voted in favor of the resolution, 40 voted against, and 39 abstained. A total of 615 deputies took part in the voting.
“The Fund should combine recovery, reconstruction and modernization with the requirements and process of accession to the Union, linking financial support to reforms and investments with a view to joining (the EU),” the document says.
The document was authored by representatives of the Foreign Affairs Committee Michael Gahler (Germany) and the Budget Committee Eider Gardiasabal Rubial (Spain).
The resolution stipulates that the EU will support Ukraine in three areas. The first is financial support for the country to implement reforms and investments, as well as to maintain its macro-financial stability. The second is to mobilize investment and increase Ukraine’s access to finance. The third is to help Ukraine on its path to European integration.
The approved decision stipulates that 33% of the resources for Ukraine will be allocated in the form of grants, “with at least 20% earmarked for the restoration, reconstruction and modernization of Ukraine’s subnational authorities, such as regions, cities and local communities.” In addition, 20% of the fund’s investments will be directed to green initiatives, and 15% to small and medium-sized enterprises.
The resolution calls for the Ukrainian government to develop a Plan for Ukraine. This plan, as noted in the document, will be “a coherent, comprehensive and adequately balanced recovery and modernization effort that supports Ukraine’s economic, social and environmental recovery, sustainable development and progress towards accession to the Union”, in line with the goals and requirements of the EUR 50 billion Ukraine Fund.
The Ukraine Plan is expected to provide a framework for other donors to identify priority areas for funding the country’s recovery.
The activities of the Ukraine Fund are to be evaluated annually by the European Commission.
“For effective monitoring, Ukraine should report once a year on the progress of the implementation of measures. Such reports prepared by the government should be appropriately reflected in the Ukraine Plan. Relevant reporting requirements should be applied to the recipients of Union funding,” the resolution says.
The EP resolution also calls for the development of ways to “utilize frozen Russian assets.
The text emphasizes “the importance of working with international allies to achieve this goal.” “This includes ensuring progress on how to use frozen Russian assets to help rebuild Ukraine,” the document says.
The approval of the Fund for Ukraine by the European Parliament now paves the way for the EU Council to adopt an official regulation, which will enter into force after publication in the EU’s Official Journal.
Earlier, the European Commission’s proposal to establish the Ukraine Fund was approved by the EU Council at an extraordinary meeting on February 1, as Hungarian Prime Minister Viktor Orban blocked the decision at a scheduled meeting held last December.
