EU greenlights changes proposed by Kyiv to secure fresh funding under Ukraine Plan

The European Commission has approved amendments proposed by Ukraine to the Ukraine Plan, which outlines the reforms needed to unlock EU funding under the Ukraine Facility.

European Commission spokesperson Guillaume Mercier said an updated reform plan has been approved, enabling Ukraine to receive new funding tranches under the Ukraine Facility.

"Following the Commission’s assessment, the Commission adopted and submitted its proposal to amend the Plan to the Council on 18 September. Due to the continued war, Ukraine submitted a request to revise the Ukraine Plan on 7 August, as the Ukraine Facility Regulation allows for it." Mercier said.

He added that the EU Council must now review the document and either make further changes or approve the revised plan.

The spokesperson clarified that "the proposed changes focus on making the Plan more practical and effective under current conditions".

"For example, some deadlines in the energy and financial markets chapter will be brought forward. This includes the adoption of the electricity integration package and clearer descriptions of reform steps, all designed to ensure smoother implementation," Mercier said.

European Pravda reported that the Ukraine Plan was first assessed by the EU Council in 2024 and was based on an IMF scenario assuming that Russia’s war of aggression would end that year. With the war ongoing, a revision of the reform plan was expected.

On 1 August, the Ukrainian government decided to amend the Ukraine Plan and announced that the revised plan should be approved by the EU Council by the end of September.

Since early 2024, the Ukraine Facility, valued at €50 billion, has served as the EU’s primary source of financial support for Ukraine.

Starting in the second quarter of 2024, the EU linked its financial support to Ukraine’s implementation of reforms. Ukraine has specific indicators for each quarter – changes it must make or decisions it must adopt. To demonstrate its readiness, the government has detailed all steps and deadlines in a document called the Ukraine Plan.

On 25 July, a spokesperson for the European Commission told European Pravda that the next tranche of the Ukraine Facility would be cut because Kyiv had not carried out the promised reforms.