On 20 June 2023, the European Commission president Ursula von der Leyen proposed a regulation to establish the Ukraine Facility – a dedicated financing instrument meant to provide coherent, predictable as well as flexible support for the period 2024-2027 to Ukraine, to sustain its macro-financial stability, promote recovery as well as modernise the country whilst implementing key reforms on its EU accession track.

The Facility would be organised around three pillars:

• Pillar I – financial support to the State in the form of grants and loans. 
• Pillar II – a specific Ukraine Investment Framework designed to attract and mobilise public and private investments for Ukraine's recovery and reconstruction.
• Pillar III – technical assistance and other supporting measures, including mobilisation of expertise on reforms, support to municipalities, civil society, and other forms of bilateral assistance normally available for pre-accession countries under the Instrument for Pre-Accession (IPA).

The foreseen overall amount of the Facility would be up to EUR 50 billion (2024-2027), as a mix of grants and loans. Grants would be mobilised through a new special instrument, proposed in the context of the Multiannual Financial Framework (MFF) mid-term review. The loans would be granted in a similar fashion to the current financing under the Macro Financial Assistance ‘Plus' (MFA+).

The proposed Specific Objectives of the Facility also mention “repair, rebuild and improve social infrastructure, such as housing, healthcare facilities, schools and higher education institutions, and research infrastructure; strengthen economic and social development, with particular attention to women and youth, including through quality education, training, reskilling and upskilling, and employment policies, including for researchers” (Article 3.2.c), although the exact allocation for such and other activities would be decided at a later stage.

In the next steps, the European Parliament and the Council will examine the proposal, in the framework of the MFF mid-term review package. If adopted, Ukraine will be invited to submit its Plan, laying out the reforms and investments it intends to undertake. Following its assessment of the Plan, the European Commission will make a proposal to the Council to adopt the Plan and set the conditions to be fulfilled by Ukraine to access support under the Facility.