Ukraine to Get €3.5B From EU to Stabilize Economy, Rebuild, Modernize

The European Council approved €3.5 billion ($3.8 billion) in grants and loans for Ukraine’s macro-financial stability, reconstruction, and modernization. 

The money comes via the Ukraine Facility program – the EU’s financial assistance program for Ukraine started in 2024. This is the third tranche of funds to go to Kyiv, a press release from the EU Council says. 

As of Feb. 24, 2025, €19.6 billion ($21.4 billion) under the Ukraine Facility has been disbursed, the EU Council wrote. 

What is the Ukraine Facility program? 

Ukraine Facility entered into force on March 1, 2024, and is authorized, up to 2027, to provide up to €50 billion ($54.6 billion) of financing in grants and loans to Ukraine.

It became the key EU macro-financial program to support Ukraine’s recovery after Russia invaded the country in 2022, causing a 28% drop in GDP in 2022 and half a trillion dollars of damages for Ukraine over the next decade. 

Apart from recovery, Ukraine Facility’s requirements for reforms will also assist Ukraine in its EU accession process in the next four years. 

Along with funding the state budget, Ukraine Facility makes private investments and provides technical assistance. In return, Kyiv must implement economic reforms.

The third review to receive the tranche ended successfully, the EU Council wrote in the press release. However, had Kyiv failed to carry out reforms, it could have lost out on funds received a smaller tranche or faced audits.

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“The Council concluded today that Ukraine had satisfied the necessary conditions laid down in the Ukraine Plan … Ukraine successfully demonstrated that it had implemented 13 different steps,” the EU Council’s press release wrote. 

These include, among others:

• Passing reforms to increase the use of renewable energy
• Increasing the autonomy of the energy regulator
• Simplifying border-crossing procedures in line with EU standards
• Adopting a strategy for agriculture and rural development (including the removal of land mines from agricultural areas)
• Continuing work on listing its strategic and critical raw materials

The EU has played a critical role as a financial partner alongside the US since mid-2022, and most EU leaders have continuously supported Ukraine since then. 

While American aid was disbursed rapidly to cover emergency needs – often with minimal bureaucratic hurdles – the EU took a more measured approach.

The EU’s macro-financial assistance required coordination among member states, making the process slower, but it was strategically designed for mid-term economic stabilization rather than short-term relief.