«Recovery Mechanism»: 50 billion euros for Ukraine from the beginning of next year

The European Parliament plans to vote on the final text of the Recovery Mechanism plan at the end of November this year. The plan envisages assistance to Ukraine in rebuilding and modernizing the country and countering Russian aggression. Starting early next year, disbursements under the Recovery Mechanism are scheduled to begin. The amount of funding will be up to €50 billion for the period from 2024 to 2027.

In June of this year, the European Commission announced the creation of a special new "Mechanism to support the recovery, reconstruction and modernization of Ukraine". The main purpose of this mechanism is to help Ukraine respond to Russian aggression and recover from the war. For this purpose, the allocation of 50 billion euros is envisaged for the period from 2024 to 2027.

Viola von Cramon, Member of the European Parliament and Deputy Head of the Delegation to the EU-Ukraine Parliamentary Association Committee, said that the Recovery Mechanism plan should be implemented in a democratic manner, taking into account public opinion, and its final text will be coordinated with proposals in the Parliament. The plan should be ready for a vote in late November.

Once the plan is approved, the European Commission will start consultations, and disbursements of the funds to support the recovery and modernization program should begin early next year. The first tranche of €12 billion will be disbursed to Ukraine next year, but the disbursement mechanism is still being finalized.

The plan also takes into account that the distribution of funds for the implementation of projects will not be carried out exclusively by the executive branch. The European Parliament will also have the opportunity to make proposals on the distribution of funding. Local governments will also be involved in the planning process and in deciding which projects will be supported.

As for the specific sectors of the economy that will receive funding, the European Commission has not yet made a final decision. Everything will depend on the conditions and specific needs of the country. It is planned to take into account security aspects and priorities. The draft plan is focused on green development and digitalization of the country.

"We must take into account public opinion and the needs of people in the regions. Ukraine has great potential in green production, green offices and other green initiatives. To fulfill our plans, we need to take into account the opinion of the public and the needs of the regions," said Mr. Kovalchuk.