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European Commission Will Allocate EUR 500 Million In Budget Support To Ukraine

The European Union and Ukraine have signed an agreement on providing Ukraine with budget support in the amount of EUR 500 million.

Prime Minister Denys Shmyhal announced this on his Telegram channel, Ukrainian News Agency reports.

"Ukraine and the EU have signed five agreements at once that bring our country closer to joining the European Union and contribute to the stability of our state in the war against the Russian aggressor," he wrote.

The head of government said that, in particular, an agreement was concluded on providing Ukraine with budget support for EUR 500 million.

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According to Shmyhal, these funds will be used to provide housing for internally displaced persons, as well as to support small farmers so that they can continue and develop their business.

Besides, an agreement was signed on Ukraine's participation in the EU Digital Europe program (2021-2027).

The Prime Minister noted that this is part of a digital visa-free regime with the European Union.

This program has a budget of EUR 7.5 billion for the development of projects in five areas: a supercomputer; artificial intelligence; cybersecurity; digital skills; ensuring widespread use of digital technologies in the economy and society.

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An agreement was also signed on Ukraine's participation in the EU program for cooperation in the customs sphere.

"From October 1, a customs visa-free regime with the EU will work. After signing today's agreement, Ukraine will join the program of cooperation in the customs sector with a budget of almost EUR 1 billion. This will improve the skills of our customs officers, participate in the development and use of European electronic systems," the head of government said.

On the sidelines of the 8th meeting of the Ukraine - EU Association Council also signed an agreement on Ukraine's participation in the EU program for cooperation in the tax sphere Fiscalis.

Thanks to this, from now on, the State Tax Service of Ukraine will be able to exchange information with colleagues from the EU.

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It is also possible to use modern European IT systems in the field of taxation.

Shmyhal notes that thanks to the signing of the fifth agreement, the European Commission will increase the budget for grants for Ukraine by EUR 122 million, which will provide funding for priority projects for Ukraine and accelerate their receipt due to the fact that grants can be provided directly to state authorities, local self-government and public organizations.

According to the Prime Minister, all five agreements are an important element of the two-year plan for integration into the EU, as well as the extraordinary step of European solidarity with Ukraine in this war.

As Ukrainian News Agency earlier reported, Shmyhal said that Ukraine will receive a "customs visa-free regime" with the European Union this year.

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