The Ukraine Facility
The Ukraine Facility is an EU instrument providing Ukraine with up to €50 billion in loans and grants to help its recovery, reconstruction and modernisation.
What is the Ukraine Facility?
The EU is firmly committed to contributing to the repair, recovery and reconstruction of Ukraine. It is set to provide sustained support, especially for Ukraine’s accession path to the EU. To this end, the EU has created a new mechanism that brings together the bilateral support provided by the EU to Ukraine in one single instrument, ensuring coordination and efficiency.
The Ukraine Facility provides predictable financial support for Ukraine over the 2024-2027 period.
The facility aims to support:
- macro-financial stability, recovery and modernisation
- reforms
- uninterrupted public services
- civil society
- the mobilisation of investments in the private sector
The facility is designed as a coherent and flexible instrument adapted to the unprecedented challenges of supporting a country at war. It aims to ensure the predictability, transparency, and accountability of the funds. It is organised around three pillars.
Pillar 1: financial support for Ukraine
EU support for the Ukraine plan (prepared by the Ukrainian government with the European Commission) through grants and loans.
Pillar 2: Ukraine investment framework
Attraction and mobilisation of public and private investments in Ukraine’s recovery and reconstruction (in the form of budgetary guarantees, financial instruments or blending operations).
Pillar 3: assistance programmes to Ukraine
Technical assistance for the Ukrainian government (on EU laws and structural reforms) and support for civil society.
Other donors, such as third countries and international organisations, are encouraged to contribute to the facility.
On 6 February 2024, the Council and the Parliament reached a provisional agreement on the proposal to set up the Ukraine Facility.
On 28 February 2024, the Council gave the final go-ahead for the mid-term revision of the EU long-term budget, including the establishment of the facility. The decision entered into force on 1 March 2024.
What are the conditions of the support?
The government of Ukraine presented the ‘Ukraine plan' in March 2024. The plan was a pre-condition for receiving funding, and sets out:
- Ukraine’s vision for the recovery, reconstruction and modernisation of the country
- the reforms planned as part of its EU accession process
The plan emphasises structural reforms and investments in the sectors with the greatest growth potential. It covers planned improvements in public administration, emphasising good governance, adherence to the rule of law and the fight against corruption and fraud.
On 14 May 2024, the Council gave a positive assessment of the 'Ukraine plan', noting in particular that - thanks to this plan - Ukraine fulfils the precondition for support under the Ukraine Facility.
Payments to Ukraine are disbursed by the EU subject to the implementation of the agreed reform and investments by way of the qualitative and quantitative steps set out in the relevant Council decision.
In addition, financial support under the 'Ukraine plan' is made available on the precondition that Ukraine continues to uphold and respect effective democratic mechanisms.
What is the total budget of the facility?
The overall amount of the facility is €50 billion for the period from 2024 to 2027 for all types of support. EU leaders agreed on this amount in the context of the mid-term revision of the current EU long-term budget 2021-2027 (multiannual financial framework, MFF), on 1 February 2024.
The facility is equipped with a robust framework for audit and control. A dedicated independent audit board will scrutinise the use of the funds.
The total budget of €50 billion is provided through both loans (€33 billion) and grants (€17 billion).
A new special instrument, the Ukraine reserve, was proposed in the context of the MFF revision and will cover the grants. Loans will be guaranteed through the own resources headroom, similar to the current financing under the macro-financial assistance ‘plus' (MFA+) programme.
The headroom is the difference between the maximum amount of resources that the Commission can ask member states to contribute in a given year and the funds that the Commission actually needs to cover the expenses foreseen by the budget.
What support has the EU provided so far?
As of 26 June 2026, the Council has approved seven regular payments under the Ukraine Facility and €42 billion has been mobilised in total.
Why a new instrument?
Russia’s war of aggression against Ukraine has caused Ukraine damages amounting to hundreds of billions.
Reconstruction costs are estimated at $486 billion over the next decade, resulting in a loss of access to financial markets and a significant drop in public revenue, while public expenditure to address the humanitarian situation and to maintain the continuity of state services has increased markedly.
With the facility, the EU will have a unified and legal instrument at hand that ensures a consistent and transparent approach and a coherent and integrated policy response to the situation of Ukraine. The facility will replace existing support through the MFA+ programme and the neighbourhood, development and international cooperation instrument (NDICI).
At the same time, the facility will make it possible to link Ukraine’s recovery, reconstruction and modernisation efforts to its EU accession path. With the creation of the Ukraine plan, funds will be disbursed upon delivery of sectoral and structural reforms and investments.
The facility also provides a clear mid-term perspective, with predictable funding for the 2024-2027 period. Predictability is important for Ukraine, but also for international partners and other donors.
See also
EU solidarity with Ukraine
Russia's war against Ukraine
EU military support for Ukraine
Last review: 26 June 2026