During a vote on Tuesday, 17 October, the European Parliament backed a proposal to establish a €50 billion fund to support Ukraine’s recovery, reconstruction and modernisation for the period 2024–2027.

This was reported by the European Parliament’s press service. 

The Parliament’s position on the proposed mechanism for Ukraine was adopted with 512 votes in favour, 45 against and 63 abstentions.  

The programme for Ukraine is part of the ongoing review of the EU’s long-term budget. MEPs insist that the mechanism, along with the budget review as a whole, must be agreed as soon as possible, and that the package must also be integrated into next year’s annual budget, negotiations on which will take place in November.

One of the key demands of MEPs is the use of assets belonging to the Russian Federation or other legal or natural persons directly linked to Russia’s war of aggression for the reconstruction of Ukraine. Parliament has strengthened provisions on combating fraud, corruption, conflicts of interest and misuse of EU funds in Ukraine. 

MEPs have also introduced amendments to the proposal to make the mechanism more transparent by creating a web portal detailing the funds provided to Ukraine and their intended purposes, as well as the ‘milestones’ the country has achieved to receive the aid. 

For reference

On 20 June 2023, the European Commission proposed establishing a special Ukraine Facility with a budget of up to €50 billion for the period 2024–2027 in the form of grants and loans.

This mechanism will replace the bilateral support currently provided by the EU under the Neighbourhood, Development and International Cooperation Instrument ‘Global Europe’ (NDICI) and the €18 billion macro-financial assistance programme, which expires at the end of 2023.