EU approves €3.5 billion in Ukraine aid under Ukraine Facility

"Ukraine will soon receive approximately €3.5 billion after the Council approved the third installment of non-repayable grants and loans under the Ukraine Facility program," the statement reads.

The European Council emphasized that the primary goal of Ukraine Facility is to support Ukraine’s macroeconomic stability, reconstruction, and modernization. "With this third payment, Ukraine will have received around €20 billion through the Ukraine Facility since its launch a year ago," the statement noted.

According to the press release, the Council confirmed that Ukraine has met the necessary conditions set by Ukraine Facility to receive the third disbursement. "Ukraine successfully demonstrated compliance with 13 different criteria, including expanding renewable energy usage, strengthening energy regulator independence, simplifying border crossing procedures to align with EU standards, adopting an agricultural and rural development strategy (which includes demining farmlands), and advancing its strategic and critical raw materials list," the European Council detailed.

The statement also highlights that Ukraine Facility outlines Ukraine’s plans for recovery, reconstruction, and modernization, as well as its timeline for reforms necessary for EU accession over the next four years.

What is Ukraine Facility?

Ukraine Facility is a €50 billion EU financial and technical assistance program for 2024–2027. It includes:

• €38.27 billion for budgetary support,

• €6.97 billion for an investment fund,

• €4.76 billion for technical and administrative assistance.

Previous financial support to Ukraine

• Jan. 10, 2025: Ukraine’s Ministry of Finance announced the receipt of €3 billion from the EU, part of the G7’s Extraordinary Revenue Acceleration for Ukraine (ERA) initiative.

• Dec. 24, 2024: The United States transferred $1 billion to Ukraine—the first installment of a $20 billion package funded by frozen Russian assets under the G7 initiative.

• Dec. 25, 2024: After talks with Japanese Prime Minister Shigeru Ishiba, President Volodymyr Zelenskyy announced that Japan would provide $3 billion to Ukraine, secured through frozen Russian assets.

President Zelenskyy has also proposed using Russia’s frozen assets to purchase weapons from the United States.

Ukrainian Prime Minister Denys Shmyhal expects the G7 and EU to allocate $50 billion to Ukraine in 2025, backed by frozen Russian assets.