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€50bn: European Commission creates mechanism to support reconstruction of Ukraine

Payouts will start from the beginning of 2024. 

€50bn: European Commission creates mechanism to support reconstruction of Ukraine
Viola von Kramon
Photo: Media Center Ukraine - Ukrinform

The European Commission is creating a mechanism to support the reconstruction and modernization of Ukraine in the total volume up to 50bn euros, Media Center Ukraine - Ukrinform reports.

Payments are scheduled for 2024-2027 to help our country resist Russian aggression and recover.

According to the member of the European Parliament Viola von Kramon, the EU should first see the Ukraine’s development plan which should be drawn up not only by the Ukrainian government, but also by all the Ukrainian people and civil society. "It is also an important element for us in the European Parliament that this plan should be set up in the democratic process, that there is the civil society included," explained von Kramon.

She noted that payouts will begin in early 2024. The first pillar (the so-called "Ukrainian plan") will involve 12bn euros.

This assistance in support of Ukraine was discussed in June. At that time, the president of the European Commission Ursula von der Leyen announced that the funds would involve the allocation of both grants and loans. The grants are mobilised through a new dedicated instrument proposed in the context of the mid-term review of the Multiannual Financial Framework (MFF). And loans will be provided at the expense of the reserve, similar to the current financing within the framework of macro-financial assistance (MFA+).

Last month, Prime Minister Denys Shmyhal announced that the government is finalising the formation of a legal framework for the reconstruction of communities and regions. 

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