Changes from adopted text to adopted text

Removed(21) The recovery, reconstruction and modernisation effort should build on Ukraine’s ownership, close cooperation and coordination with supporting countries and organisations, and Ukraine’s path towards accession to the Union. Regional and local administrations as well as Ukrainian civil society organisations and experts are also expected to play an important role in this process by fully participating in its design and scrutiny. Peer-to-peer cooperation and programmes embedded in partnerships between cities and regions in the Union and those in Ukraine have already facilitated the delivery of humanitarian aid to Ukraine and thus provide a basis to enrich and accelerate the recovery, reconstruction and modernisation process.

Removed(22) The Union should also ensure the involvement in policy shaping, close consultation and association of local and regional authorities, which embrace a large variety of sub-national levels and branches of government, including regions, municipalities, rayons and hromadas and their associations, as well as close consultation and participation of Ukrainian civil society organisations and experts. The Union should ensure their meaningful participation in the recovery, reconstruction and modernisation of Ukraine, based on sustainable development and through the implementation of the Sustainable Development Goals at local and regional level. The Union should recognise and support the multiple roles played by the local and regional authorities and civil society actors as promoters of a territorial and inclusive approach to local and regional development, including decentralisation processes, participation and accountability, which should be developed with the introduction of a public legal entity for municipalities, and further enhance its support for local and regional authorities’ capacity building, as well as the provision of expertise necessary for the implementation of projects under the Facility.

Removed(23) The Union should provide support to the transition towards accession for the benefit of Ukraine, drawing on the experience of the Member States. Such cooperation should focus particularly on the sharing of experience that was acquired by the Member States during their own reform processes.

Removed(24) Support under the Facility should also build on and maximise synergies with key organisations supporting Ukraine’s reforms and reconstruction, such as the European Investment Bank, the European Bank for Reconstruction and Development, the World Bank, the Organisation for Economic Co-operation and Development, and the International Monetary Fund.

Removed(25) Given the uncertainties linked to the war, it is appropriate that the Facility should be able to provide support to Ukraine in duly justified exceptional circumstances, in particular in the event of a significant deterioration of the war, and in order to maintain its macro-financial stability and to ensure the achievement of the objectives of the Facility. Such exceptional financing should only be provided, through a delegated act, if it is concluded that it is impossible for Ukraine to fulfil the conditions attached to the forms of support under this Regulation, when it is the beneficiary of the support, and should cease as soon as the fulfilment of the conditions becomes possible again. Such financing should not affect funding from other specific Union instruments which should be mobilised in case of natural disasters or other humanitarian or civil protection emergencies.

Removed(26) The enlargement policy framework defined by the European Council and the Council, the association agreement, partnership and cooperation agreement, multilateral agreements to which the Union is a party and other agreements that establish a legally-binding relationship with Ukraine, as well as resolutions of the European Parliament, communications of the Commission and joint communications of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy should constitute the overall policy framework for the implementation of this Regulation. The Commission should ensure coherence between the assistance under the Facility and the enlargement policy framework.

Removed(27) Article 49 of the Treaty on European Union provides that any European State which respects the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, and is committed to promoting those values may apply to become a member of the Union. Those values are common to Member States in a society in which inclusiveness, pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.

Removed(28) A European State which has applied to join the Union can become a member of the Union only where it has been confirmed that it fully meets the accession criteria established at the Copenhagen European Council in June 1993 (the ‘Copenhagen criteria’) and provided that the Union has the capacity to integrate the new member. The Copenhagen criteria relate to the stability of institutions which guarantee democracy, the rule of law, human rights and respect for and protection of minorities, the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union, and the ability to assume not only the rights but also the obligations under the Treaties, including the pursuit of the aims of political, economic and monetary union.

Removed(28a) Ukraine has successfully addressed the reform of two key judicial governance bodies, the High Council of Justice and High Qualification Commission of Judges. Regarding the Constitutional Court Reform, the Union has certified 'good progress'. It is of utmost importance that the internationally nominated members will have a decisive role as proposed by the government and in line with the Venice Commission recommendations. Regarding 'anti-corruption' and 'de-oligarchisation', Ukraine has made 'some progress', having appointed new heads of the Specialised Anti-Corruption Prosecutor Office and the National Anti-Corruption Bureau of Ukraine as well as having presented an action plan to reduce the influence of oligarchs.

Removed(29) It is in the common interest of the Union and Ukraine to advance the efforts of Ukraine to reform its political, legal and economic systems with a view to Union membership. Granting EU candidate status to Ukraine is a strategic investment of the Union in peace, security, stability and prosperity in Europe and allows the Union to be better positioned to address global challenges. It also provides increased economic and trade opportunities to the mutual benefit of the Union and Ukraine, while supporting a gradual transformation of the country. The prospect of Union membership has a powerful transformative effect, embedding positive democratic, political, economic and societal change.

Removed(30) Embracing and committing to core European values is a choice and is essential for Ukraine’s aspiration to Union membership. In line with this, Ukraine should take ownership and fully commit to European values as well as to upholding a global order based on rules and values and vigorously pursuing the necessary reforms in the interest of its people.

Removed(31) Reconstruction from the damage caused by the war of Russian aggression cannot be limited to rebuilding what was destroyed as it was before the war. The reconstruction offers an opportunity to support Ukraine in its process of fostering economic integration with the Union and promoting socio-economic development, assistance for cross-border cooperation, integration into the Single Market and in accelerating its sustainable green and digital transitions, in line with Union policies. The Facility should therefore promote reconstruction as well as nature and environmental reconstruction and rehabilitation in a way that modernises and improves Ukraine’s economy and benefits the whole society. The Facility should be consistent with Ukraine’s national recovery plan adopted by the National Recovery Council in June 2022 and promote the recovery, reconstruction and modernisation of Ukraine, with a priority given to critical infrastructure, productive capacity and human capital in a resilient way, taking into account the growing cybersecurity risks and an overall complex threat landscape. Moreover, the Facility should build on Union rules and standards, and invest in the transition of Ukraine towards a green, sustainable, digital and inclusive economy with the goal to transform Ukraine into a modern European welfare state and market economy. Such reconstruction should aim to address to the maximum extent possible the needs of vulnerable groups.

Removed(32) The Facility should contribute to the adherence to the Paris Agreement and the United Nations Framework Convention on Climate Change, the United Nations Convention on Biological Diversity and the United Nations Convention to Combat Desertification and should not contribute to environmental degradation or cause harm to the environment or climate. In particular, funding allocated in the context of the Facility should be coherent with the long-term goal of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1,5°C. It should also be coherent with the objective to increase the ability to adapt to the adverse effects of climate change and foster climate resilience, and with the support of biodiversity conservation, circular economy and zero-pollution. Particular attention should be given to actions that create co-benefits and meet multiple objectives, including for climate, biodiversity and the environment. The Facility should also contribute to alleviating and repairing enormous environmental damage caused by Russian aggressors, including the floods caused by blowing up the Kakhovka hydroelectric dam and bombing and mining of a large territory of Ukraine. To that end, the measures supported by the Ukraine Plan under the Facility should, to the extent possible, contribute to climate change mitigation and adaptation, environmental protection, to the green transition, including biodiversity, or to addressing the challenges resulting therefrom, and should aim to account for an amount that represents at least 20 % of the Ukraine Plan’s total allocation based on the methodology for climate tracking set out in an annex to this Regulation.

Removed(33) In this context, measures funded under the Facility should, to the best possible extent in a war-torn country, be compatible with the climate and environmental standards of the EU and the principles of ‘do no significant harm’, within the meaning of Article 17 of Regulation (EU) 2020/852 and ‘leaving no one behind’. The Facility should be based on a needs-based, efficient and effective resource allocation and use, and should avoid undue or excessive sectoral or geographical concentration, so that funding needs of all regions, sectors and company-sizes are fairly assessed on the basis of their needs-based merit.

Removed(34) The implementation of this Regulation should be guided by the principles of equality, inclusivity and non-discrimination, as elaborated in the Union of Equality strategies. It should ensure women’s meaningful participation in decision-making processes, promote and advance gender equality and mainstreaming, the empowerment of women and girls, and ▌protect and promote their rights in line with the EU Gender Action Plans and relevant Council conclusions and international conventions. The Facility should respond to the healthcare needs of Ukraine and support the recovery of Ukraine’s immensely traumatised society through proactive and targeted mental health and trauma care as a necessity for a healthy post-war society, with a particular focus on children. The implementation of the Facility should be in line with the United Nations Convention on the Rights of Persons with Disabilities and ensure relevant stakeholder involvement in decision-making processes as well as accessibility in its investments and technical assistance. The Facility should also support and promote reforms of the childcare system.

Removed(35) There remain key challenges that are essential for Ukraine to come closer to the Union and to prepare to fully assume the obligations of Union membership. These include: strengthening the rule of law, including the independence of the judiciary; the fight against corruption and in particular high-level corruption, oligarchic structures, as well as any kind of favouritism, money laundering, tax avoidance, tax evasion, tax fraud and organised crime; strengthening transparency, including public access to information; good governance at all levels through guaranteeing the legal personality of municipalities, and the participation of civil society organisations and experts, as well as by ensuring a safe and enabling operating space for human rights defenders; safeguarding the free and pluralistic media and fighting disinformation foreign information manipulation and interference; strengthening public administration reform, including in the fields of public procurement, competition and State aid ▌. In view of the longer-term nature of the reforms pursued in those areas and the need to build up track records, support under the Ukraine Facility should address those issues as early as possible.

Removed(36) In accordance with the principle of participatory democracy and for the purpose of checks and balances, the Union should encourage the strengthening of parliamentary capacities, parliamentary oversight, democratic procedures and fair representation in Ukraine as well as meaningful participation of regions and municipalities, as well as of civil society at all stages of the democratic process allowing for enhanced democratic scrutiny. The Ukraine Plan should demonstrate how meaningful participation of stakeholders was planned and conducted via consultations, with sufficient timeframes and transparency, and clear follow-up procedures to input given. The Verkhovna Rada of Ukraine should be informed and consulted at all the stages of the Facility life cycle.

Removed(37) Enhanced strategic and operational cooperation between the Union and Ukraine on security is pivotal to addressing effectively and efficiently the threats of security, organised crime and terrorism.

Removed(38) Actions under the Ukraine Facility should also support, where appropriate, confidence-building measures and processes that promote justice, truth-seeking, payment by the aggressor for the damages caused and guarantees of non-recurrence as well as collection of evidence of crimes committed during the war for the purpose of the prosecution of the crimes committed by Russia, its allies and proxies, during the full-scale war in Ukraine.

Removed(39) The support under the Facility should be made available under the precondition that Ukraine continues to respect parliamentary democracy, effective democratic mechanisms and institutions, including appropriate checks and balances, a multi-party parliamentary system, good governance at all levels, free and fair elections in line with Ukraine’s constitution, the rule of law including an independent judiciary and public prosecutor, continued advances in fighting corruption. Ukraine should also continue to guarantee respect for human rights, including the rights of persons belonging to minorities, and work towards increased women's participation in decision-making.

Removed(40) The support under the Ukraine Facility, including to Ukraine’s path toward accession, should be provided to meet general and specific objectives, based on established criteria and with clear conditionalities.

Removed(41) The general objectives of the Ukraine Facility should be inter alia to assist Ukraine in addressing the social, economic, psychological and environmental consequences of the war, contributing to the reconstruction, including recovery, restoration and modernisation of the country, fostering democratic social, economic, environmental and territorial cohesion and resilience, and a progressive integration into the Union and global economy and markets as well as an upward economic, social and environmental convergence towards Union standards, preparing Ukraine for future membership of the Union by supporting its accession process. Such objectives should be pursued in a mutually reinforcing manner and with a regular monitoring of the evolving social and economic circumstances in Ukraine. Ukraine should guarantee public access to the information on funding opportunities under this Facility, as well as free and fair competition during tendering process and grant allocation under the Facility.

Removed(41a) The Facility should ensure the establishment and coordination of decentralised implementation frameworks and know-how for resource allocation and use, with a particular emphasis on supporting SMEs and civil society actors.

Removed(42) In line with the European Pillar of Social Rights, the Facility should support solidarity, integration, and social justice with the aim of creating and sustaining quality employment and sustainable and inclusive growth, ensuring equality of, and access to, opportunities and social protection, protecting vulnerable groups, in particular women, youth, orphans, persons with disabilities and war veterans, and improving living standards. The Facility should support reforms of the childcare system. The Facility should also contribute to fighting poverty and homelessness and tackling unemployment and lead to quality job creation, the inclusion and integration of disadvantaged groups. The Facility should provide for investment opportunities in skills including through vocational education and training aiming to prepare the workforce to the digital and green transitions. It should also support the strengthening of social dialogue, infrastructure and services.

Removed(43) The Facility should ensure consistency with, and complementarity to, the general objectives of Union external action as laid down in Article 21 of the Treaty on European Union, including respect for fundamental rights and principles as well as the protection and promotion of human rights, democracy and fundamental principles of the rule of law, including on anti-corruption, judiciary, public administration and good governance.

Removed(44) Given the uncertainties linked to Russia’s war of aggression, the Facility should be a flexible instrument enabling the Union to address Ukraine’s needs through a diversified toolbox which provides financing of the Ukrainian State, support to short-term recovery and reconstruction priorities, support to investments and access to finance, as well as technical assistance and capacity building and other relevant activities.

Removed(45) Union support should be organised around three pillars, namely (i) financial support to the Ukrainian State for the implementation of reforms and investments, as well as to maintain macro-financial stability of the country, as set out in the Ukraine Plan; (ii) a Ukraine Investment Framework to mobilise investments and enhance access to finance; (iii) accession assistance to mobilise technical expertise and capacity building.

Removed(46) As the recovery, reconstruction and modernisation needs are substantial, and cannot be covered by the Union budget alone, both public and private investments should play a role. The Facility should enable the timely mobilisation of both public and private investments and should allow for the possibility to scale up support for investments in long-term reconstruction when circumstances allow, also considering implementation and absorption capacity of Ukraine. The mobilisation of private investment via the Facility should contribute to the long-term competitiveness and the innovative capacity of Ukraine.

Removed(46a) Russia and its allies must pay for the damage caused to Ukraine. The Union and its Member States should, in close cooperation, with other institutions and countries, establish a legal basis for the confiscation of Russian public assets for the purpose of financing Ukraine’s reconstruction and compensating the victims of Russia’s aggression, which is permitted under customary international law either as a collective countermeasure in response to Russia’s violation of the fundamental rule prohibiting wars of aggression or as an act of collective self-defense under Article 51 of the UN Charter.

Removed(46b) In view of the conclusions adopted by the European Council at its meeting of 29 and 30 June 2023 calling for further work on this matter, it is appropriate to already provide in this Regulation for a legal mechanism for adding amounts as external assigned revenue, within the meaning of Regulation (EU, Euratom) 2018/1046, that might later be received either from any confiscated assets of the Russian Federation or other states, entities or individuals directly in connection with the Russian war of aggression pursuant to Union restrictive measures, or from any proceeds obtained from managing those assets or accrued interest rates, under any relevant Union legal act to be adopted in the future, in accordance with applicable rules of customary international law. Any such revenues should come in addition to the resources already available under the Facility and be used in the form of grants.

Removed(47) The overall maximum amount for the Union support to the Facility should be EUR 50 billion in current prices for the period from 2024 to 2027, for all types of support. In light of the evolving circumstances and of the objectives of the Facility itself, the Union support needs to provide a balance between flexibility and programmability. As all bilateral assistance to Ukraine will be provided under the Ukraine Facility, additional funds are needed in the form of external assigned revenue on top of the financial envelope as defined in Article 6 to provide additional grants to further support Ukraine.

Removed(48) As for the Union support, other than in the form of loans, this Regulation should be financed by and in accordance with the Ukraine Reserve, as proposed in the amendment to Council Regulation (EU, Euratom) 2020/2093 , up to EUR 50 billion for the period 2024 to 2027. Such maximum amount does not constitute the prime reference amount, within the meaning of point 18 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, for the European Parliament and the Council during the annual budgetary procedure.

Removed(49) The mobilisation of the Ukraine Reserve should aim at providing at least an annual indicative amount for support, other than in the form of loans, in accordance with Article 10b of the proposed amendment to Council Regulation (EU, Euratom) 2020/2093 .

Removed(50) In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 of the Treaty on European Union (TEU) and 215(2) of the Treaty on the Functioning of the European Union (TFEU), no funds or economic resources may be made available, directly or indirectly, to or for the benefit of designated legal persons, entities or bodies. Such designated entities, and entities owned or controlled by them, therefore cannot be supported by the Facility.

Removed(51) The commitment appropriations and corresponding payment appropriations from the Ukraine Reserve should be mobilised annually in the budget over and above the ceilings of the Multiannual Financial Framework. In order to effectively allow the budgetary authority oversight and freedom of action, the Ukraine Reserve should be composed of at least three additional budgetary lines, corresponding to each of the pillars in which the proposal is structured.

Removed(52) For the part of the Ukraine Facility support provided in the form of loans, it is appropriate to extend the Union budget guarantee to cover the financial assistance which is made available to Ukraine, authorised in accordance with Article 220(1) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council . As a consequence, the amendment to Council Regulation (EU, Euratom) 2020/2093 proposes to mobilise the necessary appropriations in the Union budget over and above the ceilings of the Multiannual Financial Framework for financial assistance to Ukraine available until the end of 2027.

Removed(53) While respecting the principle that the Union budget is set annually, the possibility to apply the flexibilities in accordance with Regulation (EU, Euratom) 2018/1046 for other policies should be ensured, namely for carry overs and re-commitments of funds, to ensure efficient use of the Union funds, thus maximising the Union funds available under the Facility.

Removed(54) Restrictions of eligibility in award procedures under the Facility should be allowed on account of the specific nature of the activity or when the activity affects security or public order.

Removed(55) In order to ensure an efficient implementation of the Facility, including the facilitation of Ukraine’s integration in European value chains, all supplies and materials financed and procured under this Facility should originate from Member States, Ukraine, contracting parties to the Agreement on the European Economic Area, countries covered by Annex I to Regulation (EU) 2021/947 and Annex I to Regulation (EU) 2021/1529 of the European Parliament and of the Council, and countries for which reciprocal access to external assistance in Ukraine is established by the Commission, unless the supplies and materials cannot be sourced at reasonable conditions in any of those countries.

Removed(56) The Union should seek the most efficient use of available resources in order to optimise the impact of its external action. That should be achieved through coherence, consistency and complementarity with the other Union’s external financing instruments, as well as through synergies with other Union policies and programmes. In order to maximise the impact of combined interventions to achieve a common objective, it should be provided that the Facility should be able to contribute to actions under other programmes.

Removed(57) The Union should promote a multilateral, rules-based and values-based approach to global goods and challenges and should cooperate with Member States, partner countries, international organisations and other donors in that respect.

Removed(58) In view of the need to coordinate international support to the recovery, reconstruction and modernisation of Ukraine, it should be possible for Member States, third countries, international organisations, international financial institutions or other sources to contribute to the implementation of the Facility. Such contributions should be implemented in accordance with the same rules and conditions and should constitute external assigned revenue within the meaning of Article 21(2)(a)(ii), (d), and (e) of Regulation (EU, Euratom) 2018/1046.

Removed(59) The Commission, in consultation with the European Parliament, and the Member States should ensure the compliance, transparency, coherence, consistency and complementarity of their assistance, in particular through regular consultations and frequent exchanges of information during the different phases of the assistance cycle with all relevant stakeholders, including at local and regional level. In light of the presence of various international donors, the necessary steps should also be taken to ensure better coordination and complementarity with other donors, including through an agreement on common standards and regular consultations. In this regard, the Multi-Agency Donor Coordination Platform should be used as an already established forum for such exchange. The European Parliament, together with the Verkhovna Rada of Ukraine and the US Congress, as the parliaments of the three co-chairing entities of the Platform, should be granted observer status in its Steering Committee in order to ensure full parliamentary scrutiny, democratic oversight, transparency and accountability. The Platform should also make a provision for a territorial component, in which the European Alliance of Cities and Regions for the Reconstruction of Ukraine would play a coordinating role.

Removed(60) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU should apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 and determine in particular the procedure for establishing and implementing the budget through grants, prizes, procurement, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts, and provide for checks on the responsibility of financial actors.

Removed(61) The types of financing and the methods of implementation under this Regulation should be selected on the basis of their ability to achieve the objectives of the Facility and to deliver results, taking into account, in particular, the costs of controls, administrative burdens, and the expected risk of non-compliance. That should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of Regulation (EU, Euratom) 2018/1046.

Removed(62) A Framework agreement should be concluded with Ukraine to set up the principles of the financial cooperation between the Union and Ukraine, including necessary mechanisms to control and audit expenditures. Financing and loan agreements should also be concluded with Ukraine, where appropriate depending on each pillar, to define conditions for releasing funds.

Removed(62a) The recipients of Union funding should acknowledge the origin and ensure the visibility of the Union funding, including, where applicable, by displaying the emblem of the Union and an appropriate funding statement that reads “funded by the European Union”.

Removed(63) By way of derogation from the first, second, and fourth subparagraphs of Article 209(3) of Regulation (EU, Euratom) 2018/1046, it is appropriate that repayments and revenues generated by a financial instrument should constitute internal assigned revenue to the Facility or its successor programme.

Removed(64) By way of derogation from Article 213(4)(a) of Regulation (EU, Euratom) 2018/1046, it is appropriate that surplus from the provisions for the Ukraine Guarantee should constitute internal assigned revenue to the Facility or its successor programme.

Removed(65) Under pillar I of the Facility, financing should be provided to support the implementation of the Ukraine Plan setting out the reform and investment agenda of Ukraine towards the achievement of the general and specific objectives of the Facility, which should also be integrated in an economic and fiscal policy framework. Financing under this pillar should be provided upon satisfactory fulfilment of conditions set out in the Plan.

Removed(66) Ukraine should prepare the Plan as a coherent, comprehensive and adequately balanced response to rebuilding and modernising Ukraine, supporting its economic, social and environmental recovery, sustainable development and its progress towards accession to the Union, in line with the Facility’s objectives and requirements. As such, the Ukraine Plan would also provide a basis for other donors to identify the priority funding areas for the reconstruction of Ukraine and foster ownership, coherence and additional contributions to that end. For that purpose, Ukraine should ensure that the Plan as prepared covers its recovery, reconstruction and modernisation needs in an integrated manner, identifying to what extent the measures of the Plan are expected to be financed by the Union through the Facility. In preparing the Plan, Ukraine should take into account support provided under other Union programmes. Ukraine should develop its Plan ensuring that other donors are able to contribute to supporting the measures of the Plan, including by increasing the funding available under the Facility.

Removed(67) While the Ukraine Plan should constitute the basis for the support provided under the first pillar of the Facility, it should also provide a reference for the support to be provided under the second and third pillars of the Facility. The measures financed under the second and third pillar should support the objectives and the implementation of the Plan.

Removed(68) The Ukraine Plan should include reform and investment measures, along with the qualitative and quantitative steps that warrant satisfactory fulfilment of those measures, and an indicative timetable for the implementation of those measures. Measures started from 1 January 2023 onwards should be eligible.

Removed(69) The Plan should set out conditions reflecting progress expected to be made in the implementation of the measures it contains. Those conditions should take the form of qualitative or quantitative steps. Those steps should be planned for no later than 31 December 2027, although the overall completion of the measures to which such steps refer may extend beyond 2027. Given the need to ensure the macro-financial stability of Ukraine while supporting its recovery, reconstruction and modernisation efforts in view of the accession to the Union, the Plan should, in particular, include conditions linked to (i) essential requirements, such as macro-financial stability, budget oversight, and public financial management, which may be defined so as to reflect satisfactory progress towards fulfilment; and (ii) sectoral and structural reforms and investments set out in the Plan. Payments should be structured accordingly around such categories of conditions, reflecting the objectives of the Facility.

Removed(70) The preparation and implementation by Ukraine of the Plan should take particular account of the situation in Ukraine’s regions and municipalities, having regard to their specific needs for recovery and reconstruction, reform, modernisation and decentralisation, and should be done in meaningful and non-discriminatory consultation with regional, local, urban and other public authorities and civil society organisations and experts, in accordance with the multi-level governance principle and taking into account a bottom-up approach. In this context, the Plan should in particular enhance the economic, social, environmental and territorial development of Ukraine’s regions and municipalities, which should be complemented by explicit recognition of a public legal personality for territorial entities. The Plan should support the decentralisation reform across Ukraine and convergence towards the Union’s standards; it should also ensure the involvement of sub-national authorities, in particular municipalities, and subnational civil society organisations, in decision-making on the use of support in the reconstruction process at local level, and that the reconstruction projects selected and implemented by such sub-national authorities constitute an adequately substantial share of the support. A chapter of the Plan should outline how the relevant stakeholders have been consulted without bias and in sufficient time, where their inputs have been reflected in the Plan and where they have been disregarded, and an annex should detail their inputs.

Removed(71) The Plan should also include a detailed explanation of Ukraine’s system and planned measures to effectively prevent, detect and correct irregularities, corruption and in particular high-level corruption, fraud and conflicts of interests, and to effectively investigate and prosecute criminal offences affecting the funds provided under the Facility, and the arrangements that aim to avoid double funding from the Facility and other Union programmes as well as other donors. Measures under the Plan should ensure an efficient management and control system. Such measures should be implemented by Ukraine by an indicative date which should be set, as appropriate depending on each measure, over the course of the lifetime of the Facility. Compliance with this plan will be instrumental to both preserve the financial interests of the Union and integrate the acquis communautaire into Ukraine's internal legal order, bringing Ukraine closer to Union membership.

Removed(72) The Commission should assess the Ukraine Plan based on the list of criteria set out in this Regulation. In view of the importance of the financial effects of the support to Ukraine Plan, the Commission should be empowered to adopt a delegated act. ▌

Removed(73) Given the uncertainties and the need for flexibility in the implementation of the Facility, it should be possible for Ukraine to make a reasoned request to the Commission ▌ to amend the delegated act, where the Ukraine Plan, including relevant qualitative and quantitative steps, is no longer achievable by Ukraine, either partially or totally, because of objective circumstances related to the war. The Commission may, in agreement with Ukraine, also ▌ amend the delegated act, in particular to take into account a change of the amounts available. Ukraine should also be able to make a reasoned request to amend the Plan, including by proposing addenda where relevant, to take into account additional funding available from other donors or from other sources, such as ▌frozen and immobilised Russian assets.

Removed(74) Financial support for the Ukraine Plan should be possible in the form of a loan. In the context of Ukraine’s urgent financing needs, it is appropriate to organise the financial assistance under the diversified funding strategy provided for in Article 220a of Regulation (EU, Euratom) 2018/1046 and established as a single funding method therein, which is expected to enhance the liquidity of Union bonds and the attractiveness and cost-effectiveness of Union issuance.

Removed(75) Given the situation of Ukraine caused by Russia’s war of aggression and to support Ukraine on its long-term stability path, it is appropriate to provide loans to Ukraine on highly concessional terms with a maximum duration of 35 years and to not start the repayment of the principal before 2034. It is also appropriate to derogate from Article 220(5), point (e), of Regulation (EU, Euratom) 2018/1046 and to allow the Union the possibility to cover, for the period from 1 January 2024 to 31 December 2027, the interest rate costs (cost of funding and cost of liquidity management) and to waive the administrative costs (cost of service for administrative overheads) that would otherwise be borne by Ukraine. The borrowing costs subsidy should be granted as an instrument deemed appropriate to ensure the effectiveness of the support under the Facility within the meaning of Article 220(1) of Regulation (EU, Euratom) 2018/1046.