Ukrainian Financing Strategy
1. In order to receive financial and economic assistance under the Ukraine Support Loan, Ukraine shall submit to the Commission, in principle each year, the Ukrainian Financing Strategy. The Ukrainian Financing Strategy shall provide details on Ukraine’s financing needs and financing sources, in principle for the forthcoming 12 months.
2. The Ukrainian Financing Strategy shall contain:
(a)
the main macroeconomic assumptions underpinning the Ukrainian Financing Strategy;
(b)
information on Ukraine’s budget, per quarter and per year, including:
(i)
the targeted budget balance for the general government, broken down by subsector of general government;
(ii)
the projections for expenditure and revenue for the general government and its main subsectors, and their main components according to their economic classification;
(iii)
relevant information on general government expenditure by function, particularly on defence;
(iv)
a description and quantification of the expenditure and revenue measures to be included in the budget;
(v)
an annex containing the methodology and assumptions, and any other relevant parameters, underpinning the budgetary forecasts.
(c)
information on Ukraine’s past and projected financial developments in the general government, per quarter and per year, including:
(i)
information on the liquidity situation (cash balance) for the general government and its main subsectors;
(ii)
debt amortisations;
(iii)
a debt issuance strategy;
(iv)
other debt creating and reducing flows;
(v)
the stock of payment arrears and its projected developments.
(d)
information on the implementation of previously granted assistance under the Ukraine Support Loan, including any financial recoveries thereof;
(e)
information on projected in-kind military assistance needs;
(f)
on the basis of Ukraine’s budget and the projected in-kind military assistance needs, the expected external financing needs for the period covered by that Ukrainian Financing Strategy, including a breakdown of the amounts in that budget necessary for the objectives set out in Article 2(2). That breakdown shall contain the value of defence products to be purchased outside the Union and Ukraine;
(g)
committed and expected external financing and in-kind military assistance at the time of submission of the Ukrainian Financing Strategy for the period covered by that Ukrainian Financing Strategy, including a breakdown of the amounts of that external financing to be used in line with the objectives set out in Article 2(2);
(h)
on the basis of the information in points (f) and (g) of this paragraph, the expected external financing gap for which Ukraine seeks assistance under the Ukraine Support Loan under that Ukrainian Financing Strategy, including a breakdown of the amounts of that expected external financing gap for the objectives set out in Article 2(2); and
(i)
in order to support multiannual expenditure under Chapter IV of this Regulation, information on potential multiannual needs and a corresponding budget.
3. Ukraine may submit updated Ukrainian Financing Strategies until such time as the maximum amount of the Ukraine Support Loan referred to in Article 4(1) has been made accessible under the Ukraine Support Loan in accordance with Article 8.
Commission’s assessment of the Ukrainian Financing Strategy
1. The Commission shall assess the Ukrainian Financing Strategy submitted in accordance with Article 6 without undue delay.
2. When carrying out the assessment referred to in paragraph 1, the Commission shall act in close cooperation with Ukraine. The Commission may make observations or seek additional information, including verifying information with Member States, third countries and international organisations. Ukraine shall provide any requested additional information and may revise the Ukrainian Financing Strategy if necessary, including after its submission.
3. The Commission shall assess the Ukrainian Financing Strategy and shall, in particular assess:
(a)
the completeness, feasibility and coherence of the Ukrainian Financing Strategy with the underlying assumptions;
(b)
the consistency of the information in the Ukrainian Financing Strategy with external sources, including any recent reviews of the IMF and information from the Ukraine Donor Platform and the Ukraine Defence Contact Group;
(c)
the consistency of the expected external financing gap with the following indicative distribution of the Ukraine Support Loan:
(i)
EUR 30 000 000 000 for macro-financial assistance in accordance with Chapter III of this Regulation or for budget assistance in the form of a loan to be implemented under the Ukraine Facility pursuant to Chapter III of Regulation (EU) 2024/792;
(ii)
EUR 60 000 000 000 to support Ukraine’s defence industrial capacities in accordance with Chapter IV of this Regulation;
(d)
compliance with the precondition set out in Article 5(1).
4. Where the Commission gives a positive assessment of the Ukrainian Financing Strategy, it shall, without delay, submit a proposal for a Council implementing decision in accordance with Article 8.
5. Where the Commission gives a negative assessment of the Ukrainian Financing Strategy, it shall, without delay, inform Ukraine, giving reasons for its assessment. A negative assessment shall not prevent Ukraine from submitting a revised Ukrainian Financing Strategy.
6. Where the Commission assesses an update to the Ukrainian Financing Strategy, this Article shall apply.
Council implementing decision
1. Where the Commission makes a positive assessment of the Ukrainian Financing Strategy or its update, the Commission shall submit a proposal to the Council for an implementing decision making the financial and economic assistance accessible.
2. The Council implementing decision referred to in paragraph 1 shall:
(a)
determine the amount of assistance to be made accessible to Ukraine to assist in the implementation of the Ukrainian Financing Strategy, including the amount of that assistance accessible:
(i)
for budget assistance in the form of a loan to be implemented pursuant to Chapter III of Regulation (EU) 2024/792;
(ii)
for macro-financial assistance in accordance with Chapter III of this Regulation;
(iii)
to support Ukraine’s defence industrial capacities in accordance with Chapter IV of this Regulation;
(b)
establish the maximum number and indicative value of instalments for the assistance accessible for macro-financial assistance in accordance with Chapter III of this Regulation.
3. The determination of the amounts of the Ukraine Support Loan to be made accessible shall:
(a)
respect the maximum amount available for the Ukraine Support Loan provided for in Article 4(1);
(b)
take into account the need to ensure a fair burden sharing with other donors in covering Ukraine’s financing needs.
(c)
for budget assistance, determine to what extent regular budget assistance can be provided in the form of a loan to be implemented pursuant to Chapter III of Regulation (EU) 2024/792 or as macro-financial assistance in accordance with Chapter III of this Regulation, as appropriate.
4. The Council shall adopt the implementing decision referred to in paragraph 1 without undue delay.
Complementarity and coordination
1. In the implementation of the Ukraine Support Loan, the Commission shall act in close cooperation with Ukraine, Member States, relevant international bodies and donors to Ukraine, particularly through the Ukraine Donor Platform and the Ukraine Defence Contact Group, to ensure a coherent and consistent approach from those supporting Ukraine to address Ukraine’s financial and economic assistance needs. In doing so, the Commission shall draw on the expertise of the EEAS.
2. Articles 5, 7, 13, 14 and 15 and Article 23(1), point (b), of this Regulation shall apply in accordance with Decision 2010/427/EU.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
