The European Parliament approved the creation of a special financial instrument for Ukraine (Ukraine Facility), which provides funding of up to €50 billion for 2024-2027 in the form of grants and loans to support the recovery, reconstruction and modernization of Ukraine.

The position on the proposed mechanism for Ukraine was adopted in the first reading by 512 votes. 45 MEPs were “against” and 63 abstained, the website of the European Parliament reports.

• “The MEPs are insisting that the mechanism, together with the entire revision budget, must be agreed as soon as possible, as there will be no aid provisions for Ukraine from 2024. The package must also be integrated into next year’s annual budget, which will be agreed in November.” – it is stated in the notification of the European Parliament.

One of MEPs’ key demands is that assets from the russian federation or other entities or individuals directly connected with russia’s war of aggression be used to reconstruct Ukraine. Parliament strengthened the provisions on the fight against fraud, corruption, conflicts of interest and irregularities in the use of EU funds in Ukraine. Companies under oligarchic influence should not be eligible for funding, MEPs added.

MEPs amended the proposal also to make the Facility more transparent with the creation of a web portal on financial operations granted to Ukraine and its objectives, and on the “milestones” met by the country in order to receive the aid. They also want contributions received from third countries and international organisations to be made public.

The plan, in which Ukraine will detail the reforms and investments to be supported by the EU, should be established with Parliament’s involvement (via delegated acts) and an effective consultation of the Verkhovna Rada.