The Council of the European Union approved Tuesday an initial payment of nearly €4.2 billion ($4.58 billion) under the Ukraine Facility mechanism.

This decision, announced by the Hungarian Presidency of the Council, marks the first disbursement in a broader plan to provide up to €50 billion in financial assistance to Ukraine from 2024 to 2027.

"The Council has adopted an implementing decision today, authorizing the first payment of nearly €4.2 billion under the #UkraineFacility. This decision supports Ukraine's macro-financial stability and the functioning of its public administration," the presidency stated on X.

The approval for this initial payment was granted by the ambassadors of the EU member states in late July, as noted in another post by the presidency on X.

This funding, which is part of the EU's larger Ukraine Facility mechanism, is allegedly aimed at helping Ukraine meet various reform targets. The Council of the EU emphasized that Ukraine had met the necessary conditions and reforms stipulated in the Ukraine Plan to qualify for the funds.

The reforms in question include improvements in public financial management, governance of state-owned enterprises, the business environment, energy, and demining efforts.

The Council highlighted the urgency of disbursing the funds "as soon as possible, given the difficult fiscal situation in Ukraine."

The establishment of the Ukraine Facility Plan in February 2024 by EU leaders set the stage for this financial support. The plan enables the EU to provide Ukraine with substantial financial aid over four years, coupled with mechanisms to ensure accountability and annual approval of the funds.