The European Commission has proposed allocating €8.04 billion to Ukraine through the Ukraine Facility programme, while withholding part of the amount Kyiv requested over unfinished reforms. The proposed sum is €264.6 million below Ukraine’s request, reflecting outstanding requirements on supervisory boards at state-owned businesses and plans to gradually liberalise gas and electricity markets.
The proposal appears in a draft Council Implementing Decision dated 21 October, which European Pravda’s Brussels correspondent has seen. It covers partial payments linked to the fourth, seventh, eighth and ninth instalments under the Ukraine Plan. Approval from the Council of the EU is still required, with a decision expected by the end of November.
The total proposed allocation is €8,040,665,425 before deductions to repay pre-financing already provided. Of that amount, approximately €298.7 million relates to the fourth instalment, €368 million to the seventh, €95.5 million to the eighth and €7.28 billion to the ninth. EU sources familiar with the matter told European Pravda that Ukraine would receive around €7.8 billion after the pre-financing deductions.
For the ninth instalment, the Commission found that Ukraine had satisfactorily completed 16 of 18 required steps. These included modernising the IT system used to enforce court decisions, approving the Human Rights Protection Strategy and adopting an anti-human trafficking programme. Ukraine also adopted an Employment Strategy and a strategy aimed at reducing state ownership in banks.
Other completed steps involved investment in education, healthcare and housing for veterans with disabilities, families of fallen veterans and internally displaced persons. The Commission also recognised preparations for an independent assessment of the National Energy and Utilities Regulatory Commission, along with measures concerning electronic identification and water monitoring.
The unfinished requirements concern corporate oversight and energy market reform. Ukraine had appointed supervisory boards with a majority of independent members at 10 state-owned businesses, short of the required 15. It also had yet to adopt a roadmap setting out the gradual liberalisation of the gas and electricity markets.
In calculating the proposed payment, the Commission took account of the partially completed supervisory board requirement and a step Ukraine fulfilled ahead of schedule. That step, originally due for the tenth instalment, involved requesting an IAEA Integrated Regulatory Review Service mission. Recognising both elements added €529.4 million to the proposed payment, reducing the gap from Kyiv’s request to €264.6 million instead of nearly €800 million. Ukraine previously received €2.9 billion through the Ukraine Facility on 2 October.
