Changes from adopted text to adopted text

Removed3. In order to promote the complementarity and efficiency of their action and initiative, the Commission and the Member States shall cooperate and shall strive to avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant International Financial Institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level and through the harmonisation of policies and procedures, in particular the international principles on development effectiveness.

Removed4. Activities under the Facility shall comply, to the extent possible in a war-torn country, with the climate and environmental standards of the Union. Those activities shall mainstream climate change mitigation and adaptation, environmental protection, and conservation, human rights, democracy, gender equality and, where relevant, disaster risk reduction and energy infrastructure safety, and shall support progress towards the Sustainable Development Goals, promoting integrated actions that can create co-benefits and meet multiple objectives in a coherent way. They shall avoid stranded assets, be compatible with the principles of ‘do no harm’, to the extent possible, as well as with the sustainability mainstreaming approach underpinning the European Green Deal and shall be also guided by the ‘leaving no one behind” principle. The Commission shall be empowered to adopt a delegated act to develop a guidance for each of those principles and a methodology for supporting Ukraine in the preparation of the Ukraine Plan.

Removed5. The Facility shall not support activities or measures which are incompatible with Ukraine’s National Energy and Climate Plan, if available, with Ukraine’s Nationally Determined Contribution under the Paris Agreement, or that promote investments in fossil fuels, or that cause significant adverse effects on the environment or the climate or biodiversity, taking into account the need to rebuild and modernise infrastructure and rehabilitate nature damaged by the war in a resilient way, and they are accompanied, where relevant, by appropriate measures to avoid, prevent or reduce and, if possible, offset these effects.

Removed6. In line with the EU partnership Principle and EU Code of Conduct, the Commission shall guarantee that relevant stakeholders, including the Verkhovna Rada, local and regional authorities, social partners and civil society organisations, are duly and fairly consulted and have timely access to relevant information to allow them to meaningfully participate in shaping the design, implementation of activities eligible for funding under this Facility, and in the related monitoring, scrutiny and evaluation processes. Such involvement shall seek to represent the pluralism of the Ukrainian society and business community and ensure the inclusiveness of different communities in Ukraine.

RemovedThe Commission shall give specific attention to the participation of women in consultations, as well as the inclusion of vulnerable groups, such as war veterans and persons with disabilities, in such consultations. The Commission shall in particular promote the involvement of the Verkhovna Rada, as well as regional or local representative bodies and public authorities, in accordance with the multi-level governance principle and taking into account a bottom-up approach. The Commission shall ensure that the Verkhovna Rada is meaningfully consulted on the entirety of the Ukraine Plan before its submission to the Commission and is able to fully fulfil sufficient inquiry and monitoring duties during and after the duration of the Facility.

RemovedThe Commission shall continuously assess the degree to which the involvement of stakeholders is fair and representative of the pluralism of interests in Ukrainian society and business communities, in particular by assessing whether stakeholders of different sizes and with differing or opposing interests have been appropriately consulted. The Commission shall encourage coordination among the relevant stakeholders. The Commission shall ensure that civil society in Ukraine is able to directly report any irregularities they may detect to the Commission via appropriate standing channels and platforms.

Removed7. The Commission, in cooperation with the Member States and Ukraine, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of assistance, including by promoting the full implementation of the Aarhus Convention and the implementation and reinforcement of internal control systems and anti-fraud policies. The Commission shall make information on the volume and allocation of assistance publicly available through a single webportal, and shall ensure that data are up-to-date, easily accessible, available in machine-readable format and comparable. The names or legal identities of the 2 000 largest final beneficiaries and all final beneficiaries that received cumulative amounts higher than EUR 100 000 shall be published.

RemovedRelations with other Union funding instruments

Removed1. The Facility shall progressively replace, as soon as possible, the bilateral allocation provided to Ukraine under the Neighbourhood, Development and International Cooperation Instrument (NDICI-GE) and the support provided in the form of macro-financial assistance.

Removed2. Ukraine shall remain eligible for support under NDICI regional, cross-border, thematic, and crisis response programmes as well as other Union instruments. Support provided under the Facility shall not preclude Ukraine from becoming eligible for funding under the IPA Regulations in the future. The Commission shall ensure coherence between the assistance provided under the Facility and the enlargement policy framework.

Removed3. Actions falling within the scope of Regulation (EC) No 1257/96 as well as within the scope of the European Peace Facility shall not be funded under the Facility.

Removed4. The Commission shall ensure complementarities and synergies between the Facility and other Union programmes, with a view to avoiding double funding.

Removed1. A precondition for the support to Ukraine under the Facility shall be that Ukraine continues to uphold, develop and respect effective democratic mechanisms, including a multi-party parliamentary system at all levels of government, which safeguards the rights and prerogatives of a democratic opposition, appropriate checks and balances, such as media freedom, transparent and institutional budget allocation, mechanisms and institutions ensuring the prevention, detection and punishment of fraud, corruption and conflicts of interests, the rule of law, as well as free and fair elections in line with Ukraine’s constitution. Moreover, Ukraine shall continue to guarantee respect for human rights, including the rights of persons belonging to minorities, work towards increased women's participation in decision-making.

Removed2. The Commission shall monitor the fulfilment of the precondition set out in paragraph 1 before disbursements to Ukraine under the Facility are made and throughout the period of the support provided under the Facility taking duly into account the Commission’s regular enlargement report. The Commission shall take into account the relevant recommendations of international bodies, such as the Council of Europe and its Venice Commission in this process. The Commission may adopt a decision concluding that this precondition is not met, and in particular, suspend the payments referred to in Article 25, irrespective of the fulfilment of conditions referred to in Article 15(2). In its assessment, the Commission shall also take into account the context in Ukraine, and the consequences of the application there of martial law. The Commission’s assessment shall be transmitted simultaneously to the European Parliament and the Council.

RemovedFinancing and implementation

Removed1. The resources for the implementation of the Ukraine Facility shall be available in accordance with Article 10b of Council Regulation (EU, Euratom) 2020/2093, with the following indicative distribution:

Removed(a) 75 % in the form of non-repayable financial support pursuant to Chapter III of this Regulation, of which at least 15% to the recovery, reconstruction and modernisation needs of Ukraine`s sub-national authorities such as regions, cities and local communities;

Removed(b) 16 % for expenditure pursuant to Chapter IV;

Removed(c) 8 % for expenditure pursuant to Chapter V;

Removed(d) up to 1 % for expenditure pursuant to paragraph 5 of this Article.

Removed2. The financial support pursuant to Chapter III in the form of a loan, shall be available for an amount of up to EUR 50 000 000 000 for the period from 1 January 2024 to 31 December 2027.

RemovedThe overall amount of disbursements of the loans shall take into account the amounts made available pursuant to paragraph 1 and the amount referred to in paragraph 3.

Removed3. The sum of the resources made available pursuant to paragraphs 1 and 2 shall not exceed EUR 50 000 000 000 for the period 2024 to 2027. The amounts shall be mobilised annually from the Ukraine Reserve in the Union budget over and above the ceilings of the Multiannual Financial Framework by the budgetary authority. The nomenclature of the Ukraine Reserve shall be composed of additional budgetary lines, corresponding to each of the pillars in which this Regulation is structured.

Removed4. Additional contributions for financing the support referred to in paragraph 1 may be provided in accordance with Article 7.

Removed5. The resources referred to in point paragraphs 1(d) and 4 may be used for technical and administrative assistance for the implementation of the Facility, such as preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, consultations with the Ukrainian authorities, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication actions, including inclusive outreach actions, and corporate communication of the political priorities of the Union, insofar as they are strictly related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, and all other technical and administrative assistance expenses incurred by the Commission for the management and costs of the Facility at headquarters and in Union delegations. Expenses may also cover the costs of other supporting activities such as quality control and independent monitoring of projects on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments.

Removed1. Member States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions to one or more of the pillars referred to in Article 1(2) without being bound by the indicative distribution referred to in Article 6(1). Such contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a)(ii), (d), and (e) of Regulation (EU, Euratom) 2018/1046.

RemovedAdditional amounts received as external assigned revenue within the meaning of Article 21(5) of Regulation (EU, Euratom) 2018/1046 under the relevant Union legal acts in relation to restrictive measures in view of Russia's actions destabilising the situation in Ukraine or under any other Union legal acts concerning Russia's responsibility for the damage caused to Ukraine, shall be added to the resources referred to in Article 6. In particular, and subject to respect for applicable rules of customary international law, any assets, together with the proceeds thereof, confiscated from the Russian Federation or other states, entities or individuals directly in connection with Russia’s war of aggression or any proceeds obtained from managing those assets of the Russian Federation frozen pursuant to EU restrictive measures, may also be received as additional amounts as external assigned revenue within the meaning of Regulation (EU, Euratom) 2018/1046, under any relevant Union legal act to be adopted in future, and shall be used in the form of grants.

Removed2. The contributions referred to in paragraph 1 shall be implemented in accordance with the same rules and conditions as the amount referred to in Article 6(1).

Removed3. The contributions to the Ukraine Guarantee and to the financial instruments under Chapter IV shall be made in accordance with Article 28.

Removed1. The Facility shall be implemented in accordance with Regulation (EU, Euratom) 2018/1046, either in direct management or in indirect management with any of the entities referred to in Article 62, first subparagraph, point (c) of Regulation (EU, Euratom) 2018/1046.

Removed2. Union funding may be provided in any of the forms laid down in Regulation (EU, Euratom) 2018/1046, in particular grants, prizes, procurement, budget support, financial instruments, budgetary guarantees, blending operations and financial assistance.

Removed3. Financial instruments, budgetary guarantees and blending operations combining support from financial instruments or budgetary guarantees under the Facility shall be implemented in accordance with the principles laid down in Title X, and in particular Articles 208 and 209(1), (2) and (4), of Regulation (EU, Euratom) 2018/1046. Depending on the required operational and financial capacity, the counterpart of the budgetary guarantee, or the entrusted entity implementing financial instruments, may be the European Investment Bank or the European Investment Fund, a multilateral European finance institution, such as the European Bank for Reconstruction and Development, or a bilateral European finance institution, such as development banks. Whenever possible, the implementation of financial instruments, budgetary guarantees and blending operations under the Facility shall be complemented by additional forms of financial support, from either Member States or third parties.

Removed1. The Commission shall conclude a framework agreement with Ukraine for the implementation of the Facility setting out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, as well as to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. The framework agreement shall be complemented by financing agreements in accordance with Article 10 and loan agreements in accordance with Article 21, setting out specific provisions for the management and implementation of funding under the Facility. That framework agreement, including any related documentation, shall be transmitted to the European Parliament and the Council simultaneously and without delay and shall be made public.

Removed2. With the exception of bridge financing referred to in Article 24, funding shall only be granted to Ukraine after the framework agreement and the applicable financing and loan agreements, have entered into force.

Removed3. The framework agreement, the financing agreements and the loan agreement concluded with Ukraine, taken as a whole, and contracts and agreements signed with person or entities receiving Union funds, shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046 can be fulfilled.

Removed4. The framework agreement shall lay down detailed provisions concerning, in particular:

Removed(a) the commitment of Ukraine to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to strengthen the fight against money laundering, organised crime, oligarchic structures, undue regional or sectoral concentration of resource allocation or use, misuse of public funds, terrorism financing, tax avoidance, tax fraud, aggressive tax planning or tax evasion, and other illegal activities affecting the funds provided under the Facility;

Removed(b) the activities related to control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, as well as investigations, anti-fraud measures and cooperation;

Removed(ba) the establishment of monitoring committees inspired by the European Code of Conduct on Partnership following the best practices for the preparation of calls for proposals, progress reports, monitoring and evaluation of projects, measures and activities;

Removed(c) control requirements for release of the funding to Ukraine;

Removed(d) rules on taxes, duties and charges in accordance with Article 27(9) and (10) of Regulation (EU) 2021/947;

Removed(e) the recognition of the responsibilities of the Audit Board referred to in Article 34, and the modalities of Ukraine’s cooperation with it;

Removed(f) the obligation for persons or entities implementing Union funds under the Facility to notify the Audit Board, the Commission, OLAF and, where applicable, the EPPO, without delay, of suspected or actual cases of irregularities, fraud, corruption and conflict of interests and other illegal activities affecting the funds provided under the Facility and their follow-up;

Removed(g) the right of the Commission to monitor activities under the Facility carried out by the Ukrainian authorities, along the whole project cycle, including inter alia projects selection and award procedures including for public procurement, to take part in these as observer, as appropriate, and to make recommendations for the improvement of such activities and commitment from the Ukrainian authorities to implement such recommendations of the Commission and to report on this implementation;

Removed(h) the obligations referred to in Article 33(2), including precise rules and timeframe on collection of data by Ukraine and access for the Commission and OLAF;

Removed(i) the obligation for Ukraine to transmit electronically, in a machine-readable format and on a single webportal, to the Commission the data referred to in Article 26;

Removed(j) a procedure to ensure that disbursement requests for the loan support fall within the available loan amount, taking into consideration Article 6(2).

Removed1. Financing agreements shall be concluded for Chapters III and V, and set out measureable qualitative and quantitative steps linked to the disbursement of funds under this Regulation. They shall set out the responsibilities and obligations of Ukraine in the implementation of Union funds, including the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046. They shall also set out the conditions for payment of the non-repayable financial support, including in relation to the implementation of the framework agreement mentioned in Article 9, including the internal control systems as referred to in Article 9(4), points (a) and (c). The financing agreements shall also set out the Union’s rights and obligations. They shall be transmitted to the European Parliament and the Council simultaneously.

Removed2. The financing agreements shall include rules on reporting to the Commission on how activities are carried out, and on whether the conditions mentioned in Article 15(2) are fulfilled.

RemovedArticle 11 Rules on eligibility of persons and entities, origin of supply and materials and restriction under the Facility

Removed1. Participation in procurement, grant and prize award procedures for activities financed under the Facility shall be open to international and regional organisations and to all natural persons who are nationals of, and to legal persons which are effectively established in:

Removed(a) Member States, Ukraine, contracting parties to the Agreement on the European Economic Area and 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;

Removed(b) countries for which reciprocal access to external assistance in Ukraine is established by the Commission.

Removed2. The reciprocal access referred to in paragraph 1, point (b), may be granted for a limited period of at least one year, whenever a country grants eligibility on equal terms to entities from the Union and from countries eligible under the Facility.

RemovedThe Commission shall decide on the reciprocal access after consulting Ukraine.

Removed3. All supplies and materials financed and procured under this Facility shall originate from any country referred to paragraph 1(a) and (b), unless if the supplies and materials cannot be sourced at reasonable conditions in any of those countries. In addition, the rules on restrictions in paragraph 7 apply.

Removed4. The eligibility rules under this Article shall not apply to, and shall not create nationality restrictions for, natural persons employed or otherwise legally contracted by an eligible contractor or, where applicable, subcontractor except where the nationality restrictions are based on the rules provided for in paragraph 7.

Removed5. For actions jointly co-financed by an entity or implemented in direct or indirect management with entities as referred to in Article 62(1), point (c), of Regulation (EU, Euratom) 2018/1046 or for actions implemented by Ukrainian entities under Chapter III of this Regulation, the eligibility rules of those entities or Ukraine shall also apply in addition to the rules established under this Article, including, where applicable, the restrictions provided for under paragraph 7 of this Article and duly reflected in the financing agreements and contractual documents signed with those entities.

Removed6. Where additional contributions are provided in accordance with Article 7 through external assigned revenues, the eligibility rules in the agreement with the person providing the additional contribution shall apply with the rules on restrictions provided for under paragraph 7 of this Article.

Removed7. The eligibility rules and origin of supplies and materials in paragraphs 1 and 3 and the nationality of the natural persons referred to in paragraph 4 may be restricted with regard to the nationality, geographical location or nature of the legal entities participating to procurement procedures as well as with regard to the geographical origin of supplies and materials, in the following cases: