157th CoR Plenary Session (10-11 Oct 2023)

Prior to Russia’s invasion of Ukraine on 24 February 2022, Ukraine had made significant progress in implementing ambitious regional development and decentralisation reforms. However, the reforms faced a number of challenges, many of which have been significantly exacerbated by Russia’s war against Ukraine. This report presents an in-depth analysis of Ukraine’s progress in implementing its multi-level governance reforms and explores the role of subnational governments in disaster management. From there, it recommends how Ukraine, together with international partners, can use multi-level governance, regional development and decentralisation to support subnational reconstruction and recovery to address urgent humanitarian needs, rebuild local economies and communities, and strengthen their resilience.

Russia’s war is having a devastating humanitarian impact and has severely thwarted development progress in Ukraine. It has unleashed a humanitarian catastrophe, triggering the largest wave of refugees in Europe since World War II. As of 22 November 2022, 7.8 million refugees had fled the country, while around 6.2 million people are internally displaced. In recent months, there have been reports of an uptick in migrants returning to Ukraine. On 31 October 2022, the Office of the UN High Commissioner for Human Rights (OHCHR) recorded 16 295 civilian casualties: 6 430 killed and 9 865 injured. The war is also exacerbating territorial disparities and governance challenges across Ukraine, for example, by reducing the human and fiscal resource capacities of many municipalities. Moreover, the war has affected regions and municipalities in very different ways. Many communities have suffered tremendous loss of lives and destruction of critical infrastructure, and others have provided homes and support to internally displaced people.

This paper provides detailed insight on the use of the EU budget to support Ukraine and Ukrainian refugees. It explains the recent Commission proposal for a new ‘Ukraine Facility’ to finance the country and its recovery in the years 2024 to 2027. Furthermore, the paper addresses the challenges of ensuring full parliamentary scrutiny, democratic oversight, and effective budgetary control of the enormous amounts spent on Ukraine’s recovery. On top of that, the paper presents principles for a successful recovery.

On 9 November 2022, the European Commission presented an €18 billion Ukraine support package for 2023, in the form of highly concessional loans backed by the EU budget. Three acts must be passed for disbursement to begin in early January. If plenary approves use of the urgent procedure (Rule 163), the three proposals will be voted directly during the November II session.

The EU and its international partners are united in condemning Putin's aggression on Ukraine. We will provide support to those seeking shelter and we will help those looking for a safe way home. The EU will continue to offer strong political, financial and humanitarian assistance to Ukraine and impose hard-hitting sanctions against Russia and those complicit in the war.

Question and answers related to the New Ukrainian Facility.

The EU stands united in its unwavering support to Ukraine in the face of Russia’s unprovoked and unjustified invasion, and cruel and ruthless warfare. The EU has stepped up its political, humanitarian, financial and military support to Ukraine and is imposing massive sanctions against the Kremlin to cripple its war machine. Since the start of the invasion, the EU has mobilised €4.1 billion in macro-financial assistance, budget support, emergency assistance, crisis response and humanitarian aid to support Ukraine. €1.5 billion in military assistance under the European Peace Facility to support Ukrainian Armed Forces to defend their population and territorial integrity have also been provided [...]

The EU stands firmly with Ukraine and its people, and will continue to strongly support Ukraine's economy, society, armed forces and future reconstruction.