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the US State Department continues to work with Ukrainian partners on long-term security commitments to help Ukraine deter and, if necessary, defend against Russian aggression in the future.
The European Parliament will vote on a new €50B EU program for Ukraine. At the end of November, the European Parliament plans to vote on the final text of the new Mechanism to Support the Recovery, Reconstruction, and Modernization of Ukraine, and the first disbursement should be made at the beginning of 2024, said the deputy head of the delegation of the Ukraine-EU Parliamentary Association Committee, Viola von Cramon. "The proposal from the European Commission was put forward on June 20, and we in the committee on international cooperation were determined to start work in August," said von Cramon. She further explained that funds are planned to be allocated in tranches of €12B annually to finance projects from the plan drawn up by Ukraine. Support for specific sectors of Ukraine's economy within the framework of the new mechanism largely depends on certain conditions, particularly the security situation.
Ukraine and the EU have passed the second preparation stage for the five-year, €50B program. According to the Minister of Economy, Yulia Svyridenko, at the previous meeting, the parties agreed on the structure and distribution of topics. This time, attention was focused on the form in which the Ukrainian government should present its progress for coordination with the EU. During the last consultations, critical discussions were centered on justice, anti-corruption policy, anti-money laundering, and public administration reform. A separate block is sectoral reforms designed to promote the rapid development of the Ukrainian economy. Cross-sectional topics were also discussed - regional development and recovery of Ukraine and climate issues. As the minister clarified, the conceptual note is currently being prepared, which will become the basis for the Plan of Ukraine, and is nearing completion. "This is a general narrative that describes all the necessary measures that we plan to implement as part of the Ukraine Facility program," Svyridenko emphasized. After approval, the conceptual note will become the basis for further consultations and negotiations with donors - partners, and international organizations.
What does the Ukraine Plan envisage under the EU €50B program?Deputy Minister of Economy Oleksiy Sobolev said that the plan is a comprehensive document that will become the state's program of recovery and economic development for the next four years. Initially, it will consist of six main blocks that will form a comprehensive vision for the development of the Ukrainian economy. These are macro-financial reconstruction scenarios, main and sectoral reforms (state property management and privatization, human capital, business climate, financial sector), and development strategies for critical economic sectors. Also, the EU will increase its capacity to absorb investment and cross-sectional initiatives such as European integration, digitalization, regional development, and climate. There are already cross-sectoral developments and a general vision of the recovery course. According to regulation from the European Commission, the plan will be reviewed quarterly. Money will be received for fulfilled indicators, not for unfulfilled ones.
Ukraine received another €1.5B in macro-financial assistance from the EU. As the Ministry of Finance reports, this is the seventh tranche within the framework of the EU's large-scale macro-financial assistance program with
45 UKRAINE Country Report September 2023 www.intellinews.com