Ukraine is set to receive close to EUR 4.2 billion in funds after the Council of the European Union (EU) greenlighted the first regular payment of grants and loans under the EU's Ukraine Facility, according to a Tuesday press release.

"In a decision adopted today, the Council concluded that Ukraine had satisfied the necessary conditions and reforms envisaged in the Ukraine Plan for receiving the funds, which will be disbursed from the Ukraine Facility. These reforms cover public financial management, governance of state-owned enterprises, business environment, energy and demining," the Council said.

It also stressed the importance of allocating the money as soon as possible, given the difficult fiscal situation in Ukraine, which needs to support Ukraine's macro-financial stability and the functioning of its public administration.

The Ukraine Plan sets out Ukraine's intentions regarding the recovery, reconstruction and modernisation of the country and the reforms it plans to undertake as part of its EU accession process in the next four years, the Council recalled.

In May 2024 the Council concluded that the Ukraine Plan fulfilled the preconditions for Ukraine to receive up to EUR 50 billion in support under the Ukraine Facility.

The Ukraine Facility, which entered into force on 1 March 2024, foresees up to EUR 50 billion of stable financing, in grants and loans, to support Ukraine's recovery, reconstruction, and modernisation for the period 2024 to 2027. Of this, up to EUR 32 billion is indicatively earmarked to support reforms and investments set out in the Ukraine Plan, whereby disbursements will be conditioned to the delivery of identified indicators.