Ukraine and EU agree on new funding reform tied to European integration
The Ukrainian government and the European Union have agreed to revise the conditions of the Ukraine Facility program, making it more closely linked to EU integration reforms and introducing a more flexible payment schedule.
New approach to EU funding
Ukrainian Prime Minister Yuliia Svyrydenko announced on Thursday that an agreement with the EU on a new Ukraine support plan has been reached, though the document will not be published immediately. This agreement is part of the revision of the Ukraine Facility — a mechanism that provides financing in exchange for reforms, with a total volume of €90 billion over two years. For 2026, €8.35 billion is allocated under this instrument.
Focus on European integration
Deputy Economy Minister Daria Marchak explained that the changes affect not only the list of reforms but also the entire logic of the mechanism. The key difference is that all indicators will now be directly tied to Ukraine's EU integration process. They will include criteria derived from accession negotiations (benchmarks) or the National Program for Adaptation to EU law.
More flexible payment system
The agreement allows the EU to make payments earlier than initially planned if Ukraine reports on implementing reforms ahead of schedule. Additionally, partial payment will be possible if quantitative indicators are not fully met. The arrangement also provides for more frequent review of commitments, with a regular review at the end of the year, taking into account changing realities.
Alignment with EU requirements
Vice Prime Minister Taras Kachka stated that Ukraine is at the final stage for all reforms related to the rule of law. However, the new plan will further tie funding to EU integration goals.
