Amending the Ukraine Facility Regulation

The European Parliament adopted by 473 votes to 140, with 32 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2024/792 establishing the Ukraine Facility.

Parliament adopted its position at first reading under the urgent procedure, taking over the Commission's proposal.

The Ukraine Facility is an exceptional medium-term instrument that consolidates bilateral support provided by the European Union to Ukraine, ensuring coordination and efficiency. Its objectives aim to:

- help maintain the macro-financial stability of the country;

- contribute to the peaceful recovery, reconstruction, restoration and modernisation of the country;

- further strengthen the rule of law, democracy, respect for human rights and fundamental freedoms;

- support the integration of Ukraine in the internal market;

- adopt and implement the political, institutional, legal, administrative, social and economic reforms required to align to Union values and to progressively align to Union rules, standards, policies and practices (‘acquis’) with a view to future Union membership.

The European Parliament and Council regulation implementing enhanced cooperation regarding the establishment of the Ukraine Support Loan makes it possible to provide support to Ukraine in 2026 and 2027 in the form of a EUR 90 billion Ukraine Support Loan to be repaid by reparations due by Russia.

The regulation provides for targeted amendments to Regulation (EU) 2024/792 establishing the Ukraine facility in order to enable the provision of financial and economic assistance to Ukraine in a predictable and continuous manner.

To this end, the following amending regulation:

- sets the modalities for amounts made accessible pursuant to the Ukraine Support Loan Regulation to be implemented as additional financial support pursuant to Chapter III of the Ukraine Facility in the form of loans;

- further states that borrowing costs associated with the Ukraine Support Loan will be covered by a borrowing cost subsidy pursuant to the Ukraine Support Loan Regulation.