The government approved a draft of the Ukraine Facility plan for submission to the European Commission, Prime Minister Denys Shmyhal said on Dec. 29.

“Today, we are approving the project of the Ukraine Facility plan for submission to the European Commission. Together with businesses, the public sector, the deputies’ corps, and (Ukraine’s) regions, we have done a lot of work to create it,” Shmyhal said.

The Ukraine Facility (The Facility) is designed to support Ukraine, its recovery, and its path to European Union accession, allocating up to 50 billion euros ($55.3 billion) from 2024 to 2027.

The Facility is comprised of three pillars: It will give Ukraine direct financial support through grants and loans, mobilize private investment in Ukraine through guarantees and blended finance, and finance assistance and capacity-building programs for Ukraine’s national, regional, and municipal levels of government and civil society to help them achieve EU standards.

To unlock the support, Kyiv was required to prepare a “Ukraine Plan,” detailing its vision for Ukraine’s recovery, reconstruction, and modernization, in cooperation with the European Commission.

The program’s final conditions will be announced once the European Council approves the Ukraine Facility regulation, Shmyhal said. The meeting is scheduled for Feb. 1, 2024.

According to Shmyhal, around $43 billion of the total $55.3 billion will be targeted at “ensuring (Ukraine’s) macro-financial stability.”

“Currently, there are ongoing developments, to which the European Commission will still provide its comments and suggestions,” Shmyhal said.

According to a joint assessment by the World Bank, the Ukrainian government, the European Commission, and the UN in March, Ukraine’s reconstruction needs over the next 10 years amount to 384 billion euros ($411 billion) and 142 billion euros ($152 billion) for the 2023-2027 period.

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