EU approves nearly €3 billion for Ukraine in eighth Ukraine Facility tranche

What happened

Ukraine will soon receive nearly €3 billion after the Council of the EU approved the eighth regular tranche under the Ukraine Facility on September 24. For the first time, almost €800 million of that sum will come from the new Ukraine Support Loan.

The payment was approved after Ukraine completed another 10 steps of its reform plan. In total, according to the Council, Kyiv has now met 84 of the 95 steps due so far, or about 88%.

How much, and for what

The Council’s implementing decision puts the exact figure at about €3.047 billion. It is made up of parts of three tranches: roughly €386 million from the fifth, €368 million from the seventh and almost €2.3 billion from the eighth.

Ukraine submitted its request on August 24 and asked for slightly more, about €3.33 billion, covering parts of the fifth, seventh and eighth tranches, European Pravda reports. The European Commission gave a positive assessment of one step from the fifth tranche, three from the seventh and three of the seven steps in the eighth. Ukraine also completed three steps from the ninth tranche early, and that was taken into account by reducing the amount withheld for unfinished tasks. However, the Commission found the evidence for one of the eighth-tranche steps insufficient.

Which reforms counted

According to the Council, the steps cover the judiciary, financial markets, human capital, the business environment, energy, transport, agri-food and the environment. Ukraine published an assessment of its banking system’s resilience and a report on state support paid through the State Agricultural Register. Laws entered into force on access to information about external engineering networks, on judges’ integrity declarations and how they are checked, on more efficient district heating, on road safety and railway interoperability, and on better resolution of non-performing loans. A new electricity market operator was appointed, and an operational plan to close the gender pay gap was adopted, along with changes to state water monitoring.

What the money is for

Ukraine Facility funds support macroeconomic stability, reconstruction and modernisation, the uninterrupted work of public administration and reforms. On July 30 the Council approved an updated reform plan allowing Ukraine to receive €8.3 billion in 2026 for budget needs. The Council decision notes that €8.35 billion for 2026 was added through the Ukraine Support Loan, established by an EU regulation in February.

Who else is chipping in

The same day, the Council amended the Ukraine Plan to include a voluntary, non-repayable contribution from Norway of NOK 1 billion (about €92 million). Norway is the first non-EU country to join the programme’s first pillar. European Pravda notes that EU states, third countries and international organisations can all make voluntary contributions; Sweden added more than €253 million over the past year.

Background

The Ukraine Facility entered into force on March 1, 2024, and provides more than €50 billion in grants and loans through 2027, over €40 billion of it tied to reforms and investments in the Ukraine Plan. After the eighth tranche, total funding received by Ukraine under the Facility since mid-2024 will exceed €32 billion.