1Council Implementing Decision (EU) 2025/657 of 17 March 2025 establishing the satisfactory fulfilment of the conditions for the payment of the third instalment of the non-repayable financial support and of the loan support under the Ukraine Plan of the Ukraine Facility

The Cabinet of Ministers adopted the revised National Transport Strategy of Ukraine for the period up to 2030 via Order No 1550 of 27 December 2024. It replaces the previous strategy, adopted in May 2018.

This strategic document focuses on the reconstruction and development of a competitive and efficient transport system in line with EU policies and standards, starting with a needs assessment for the restoration of transport infrastructure. The state regulation on natural monopolies in the field of transport will be revised. Equal, non-discriminatory and transparent conditions for accessing the transport market will be ensured. National legislation on several transport-related fields (particularly aviation, road, railway and maritime transport) will be aligned with international standards and the EU acquis.

The strategy has a particular focus on trans-European transport networks (TEN-T) and the development of railway, road and inland waterway routes which are included in the maps of the TEN-T network.

The strategy is consistent with the international and EU decarbonisation targets for the transport sector. It highlights the need to progress to a more sustainable and green transport system, referring to relevant EU legislation and the EU’s target of reaching climate neutrality by 2050. It aims to ensure compliance with the Paris Agreement and with Ukrainian climate legislation. It targets a reduction in the volume of total greenhouse gas emissions by road, aviation, water transport and railways of up to 33 % by comparison with the 1990 level, or up to 90 % compared to the 2021 level. To achieve this expected result, the strategy includes measures aiming at modernising the fleet of vehicles and creating the conditions for the deployment of alternative fuels, renewable energy and electric vehicles and for the modernisation and wider use of public transport

The strategic document includes provisions on the digitalisation of transport management. These include the introduction of an electronic form of information on cargo transportation and an electronic toll collection system. Furthermore, Ukraine will gradually implement the European Rail Traffic Management System (ERTMS) and introduce digital tools to increase capacity at border crossing points.

The strategy describes how high-quality passenger transportation and unimpeded mobility will be developed (e.g. by developing passenger terminals, transport hubs and bicycle paths) with the aim of improving connectivity between different modes of transport. It also aims to make public transport more accessible to people with disabilities and other low-mobility groups. 60 % of the transport infrastructure is to be made accessible by 2030. The share of accessible public vehicles in urban bus transportation should increase by up to 70 %. Furthermore, an independent organisation for the investigation of accidents in transport will be created and a rail safety management system in line with the EU legislation will be implemented.

Through the strategy, Ukraine also aims to improve the safety of the transport system for its people and its environment. It proposes several measures to improve road safety and the safety of navigation. These include stricter enforcement of rules. For example, engineering solutions for forced speed reduction and a separation of traffic flows will improve the safety of roads and contribute to the target of reducing serious accidents in transport by 50 % by 2030.

The strategy acknowledges the importance of reducing the negative impact of roads and transport infrastructure on the environment and of taking environmental aspects into consideration during the planning, design and construction of transport infrastructure. It thus promotes sustainable and energy-efficient transport. Cities will develop and implement sustainable urban mobility plans by following the examples of EU cities and coherent with the TEN-T urban nodes approach. The share of electric transport will be increased, and the development of charging infrastructure promoted. The strategy sets targets for the renewal of the urban bus fleet, the increased use of alternative and renewable fuels, and a reduction of emissions from road transport of up to 23 % of the 1990 level.

Commission assessment: satisfactorily fulfilled

Step 11.2

Name of the step: Adoption of the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030Related reform/investment: Reform 2. Development of Ukraine’s export logistics potentialFinanced from: loans

Context

The requirement for Step 11.2 described in the CID Annex is:

Adoption of the Strategy for Developing and Expanding the Border Infrastructure with EU Member States and the Republic of Moldova until 2030. The Strategy focuses on these main areas:

reconstruction of border crossing points on the border with Poland, Slovakia, Hungary, and Romania;

creation of a network of service areas;

simplification of border crossing procedures (digitalisation and introduction of joint control) in line with EU standards.

Step 11.2 is the only step in the implementation of Reform 2 of Chapter 11 (transport).

Evidence provided

summary document duly justifying how the step was satisfactorily fulfilled in line with the requirements set out in the CID Annex;

copy of Order No 1337-p of the Cabinet of Ministers On the Approval of the Strategy for Developing and Expanding the Border Infrastructure with EU Member States and the Republic of Moldova until 2030 and approval of the operational plan for its implementation in 2024-2030, dated 24 December 2024;

copy of the Strategy for Developing and Expanding the Border Infrastructure with EU Member States and the Republic of Moldova until 2030 as an attachment to Order No 1337-p of 24 December 2024.

Analysis

The justification and substantive evidence provided by the Ukrainian authorities cover all the constitutive elements of Step 11.2.

The Cabinet of Ministers adopted the Strategy for developing and expanding the border infrastructure with EU Member States and the Republic of Moldova until 2030 with Order No 1337-p of 24 December 2024. The Strategy concentrates on the development of road and rail border crossing points.

The Strategy focuses on the reconstruction of border crossing points on the borders with Hungary, Poland, Romania, Slovakia and the Republic of Moldova. It aims to reconstruct or modernise 17 border crossing points and construct 12 new ones at the borders with the EU. It also prioritises the development of border infrastructure on the Trans-European Transport Network (TEN-T) routes.

The Strategy deals with the creation of a network of service areas. These will be constructed at the border crossing points and provide basic services for people crossing them such as food, medical care, trade, insurance, accommodation, maintenance and fuel for vehicles, and parking. The service areas will be equipped with digital systems for simplifying border crossings, such as the Electronic Border Crossing Queue eCherga system. An analysis of the needs and the state of existing infrastructure will be undertaken before the works on the network begin.

The Strategy aims to simplify border-crossing procedures (digitalisation and introduction of joint control, which is understood as coordinated control) in line with EU standards. On digitalisation, the scope of the eCherga has been expanded and the Strategy aims to introduce the system to manage queues of vehicles at all border crossing points. Ukraine should also introduce new equipment such as video control systems, weight in motion, and scanning while establishing operational integration of all information and communication systems used during control operations.

Ukraine is working to conclude cooperation agreements with the governments of neighbouring EU Member States (Hungary, Poland, Romania and Slovakia) establishing coordinated controls in line with EU standards.

Commission assessment: satisfactorily fulfilled

Step 12.1

Name of the step: Adoption of the strategy for agriculture and rural development until 2030Related reform/investment: Reform 1. Aligning the institutional framework on agriculture and rural development to the EU policyFinanced from: loans

Context

The requirement for Step 12.1 described in the step description of the CID Annex is:

Adoption of the Strategy for Agriculture and Rural Development until 2030. The strategy focuses on these main areas:

adapting Ukrainian Agriculture and Rural Development policies to the EU pre-accession context and areas of special Ukrainian concern, such as land reform, irrigation, war recovery and development support;

institutional strengthening and capacity building to develop necessary systems;

acceleration of the process to approximate legal acts and capacities for agri-food agriculture and sanitary and phytosanitary measures (SPS) to EU standards;

promoting the development to small producers and rural communities;

defining of environmental and climate action baselines and targets, building up evidence-based programming and sound financial management and control capacities.

Step 12.1 is the first step in the implementation of Reform 1 of Chapter 12 (agri-food sector). It is followed by Step 12.2 (due by Q1 2027) to establish the farm sustainability data network (FSDN) system.

Evidence provided

1. summary document duly justifying how the step has been satisfactorily fulfilled in line with the requirements set out in the CID Annex;

1. copy of the Decree of the Cabinet of Ministers of Ukraine No 1163-r on On the approval of the Strategy for the Development of Agriculture and Rural Areas in Ukraine for the period up to 2030 and approval of the operational plan for its implementation in 2025-2027, dated 15 November 2024.

Analysis

The justification and substantive evidence provided by the Ukrainian authorities cover all the constitutive elements of Step 12.1.

The overall objective of this reform is to develop strategic national priorities, including priorities for further alignment with EU practices, norms, and rules. The Cabinet of Ministers adopted Decree No 1163-r On the approval of the strategy for the development of agriculture and rural areas in Ukraine for the period up to 2030 and approval of the operational plan for its implementation in 2025-2027 on 15 November 2024. The strategy sets out agriculture and rural development policies paving the way towards Ukraine’s accession to the EU and support the development of a competitive, sustainable and diversified agricultural sector. It focuses on land reform, irrigation, war recovery and development support. It aims to: restore and further develop hydraulic facilities to ensure efficient water supply; clear land mines from agricultural areas and eliminate other consequences of military operations.

The strategy and its operational plan include measures to strengthen the Ministry of Agrarian Policy and Food’s capacity for analytics and policy making, and for integration into the EU. The strategy plans to integrate the State Agrarian Register (SAR) into the EU’s network of agricultural data, and to improve the interaction of the SAR and Ukrainian financial institutions, including the fund for partial credit guarantees in agriculture. It also envisages: making legislative amendments to create a payment agency that will ensure the timely and targeted payment of state support to agricultural producers; creating a functional administrative and control system for area-based payments; and implementing various market and investment measures.

The strategy plans to accelerate legislative alignment with EU standards, prioritising the requirements under the Association Agreement. It prioritises the approximation of legislation for sanitary and phytosanitary measures in line with the EU standards. This approximation is to be done in two stages – first in 2025-2027 and then in 2028-2030.

The strategy promotes the development of small producers and rural communities. Specifically, it plans the adoption of a simplified and unified procedure for participation in budget programmes and the redistribution of payments in favour of small producers, and the simplification of access to digital agriculture in order to increase farm productivity and optimise the use of chemicals. It also envisages the development of a national programme for the development of rural areas in 2025 under the responsibility of the Ministry of Agrarian Policy and Food, taking account of the principles of the EU LEADER programme.

The strategy and operational plan outline environmental and climate action baselines and targets up to2030. These will serve as the basis for evidence-based programming, financial management and control capacities. They include targets and initiatives for increasing the volume of recycled agricultural waste and the volume of processed food industry waste; the density of agricultural areas; the share of agricultural land with organic production; and for developing the irrigation complex. These targets and initiatives should all mitigate the negative effects of climate change.

Commission assessment: satisfactorily fulfilled

Step 12.5

Name of the step: Entry into force of the legislation on the State Agrarian Register (SAR)Related reform/investment: Reform 4. Improvement of the official public electronic farm registerFinanced from: loans

Context

The requirement for Step 12.5 described in the CID Annex is:

Entry into force of the Law of Ukraine On the State Agrarian Register. The law focuses on these main areas:

the State Agrarian Register (SAR) is recognised as an official public electronic register in the field of agrarian policy and food security with the regulation of its mandatory elements, such as the procedure for its administration, the definition of its data, access by the third parties;

SAR coverage is expanded to register and include information on stakeholders throughout the entire agricultural value chains such as agricultural producers, food processors, water users;

SAR functionality is expanded, serving as a precondition for financial assistance and enabling targeted channelling of technical assistance, other administrative services, the introduction of analytical information;

registration in SAR is a precondition for receiving any type of public support in agri-food sector;

mandatory publication of the register of beneficiaries of any state support programmes in the sector implemented through SAR.

Step 12.5 is the first step in the implementation of Reform 4 of Chapter 12 (agri-food sector). It is followed by Step 12.6 (due by Q1 2026) on the publication of a report on the implementation of state support through the public Agricultural Register.

Evidence provided

summary document duly justifying how the step was satisfactory fulfilled in line with the requirements set out in the CID Annex;

copy of the Law of Ukraine No 3980-IX On the Information and Communication System State Agrarian Register, dated 19 November 2024.

Analysis

The justification and substantive evidence provided by the Ukrainian authorities cover all the constitutive elements of 12.5.

The objective of this reform under the Plan is to formalise and improve the official public electronic farm register (the SAR). The Ukrainian parliament has adopted the Law of Ukraine No 3980-IX of 19 September 2024 On the Information and Communication System State Agrarian Register. The Law entered into force on 18 January 2025.

The Law sets out the legal, organisational and financial basis for the creation and functioning of the SAR. The SAR is officially recognised as an official public electronic register within agrarian policy and food security. The Law mandates that the register information is open to the public. It regulates procedures for SAR’s administration and contains definitions of data and access by third parties.

The SAR’s coverage has been expanded to include information on stakeholders throughout the entire agricultural value chain. Its functionality enables targeted channelling of technical assistance, other administrative services and the introduction of analytical information. Registration in the SAR is now mandatory for providing state support, support from local budgets, international technical assistance, grants in agriculture and other assistance programmes. The Law makes mandatory the publication of SAR information on beneficiaries receiving financial support.

Commission assessment: satisfactorily fulfilled

Step 13.1

Name of the step: Entry into force of the legislation on revising the National Programme for the Development of the Mineral Resource Base of Ukraine to 2030Related reform/investment: Reform 1. Strengthening strategic planning and ensuring optimum framework for strategic investorsFinanced from: non-repayable support

Context

The requirement for Step 13.1 described in the step description of the CID Annex is:

Entry into force of the Law of Ukraine on Amendments to the National Programme for the Development of the Mineral Resource Base of Ukraine for the Period up to 2030. The Law focuses on these main areas: - introduction of State Compensatory Fund for geological area; - prioritisation of the goals of extraction area in line with the EU Strategies; - definition of the terms of strategic and critical raw materials, the need for regular methodological risk assessment of the level of security of their supply, and the definition of a group of partner countries.

Step 13.1 is the first step in the implementation of Reform 1 of Chapter 13 (management of critical raw materials). It is followed by Step 13.2 (due by Q3 2025) on the publication of a report on the verification of Ukraine’s critical raw materials reserves using the international classification system. The results are made available to investors.

Evidence provided

summary document duly justifying how the step has been satisfactorily fulfilled in line with the requirements set out in the CID Annex;

copy of the Law of Ukraine No 4154-IX on On Amendments to Certain Legislative Acts of Ukraine on Updating the National Programme for the Development of the Mineral Resource Base of Ukraine for the Period up to 2030 and Regulation of Certain Issues Regarding Minerals and Components of Strategic and Critical Importance, dated 18 December 2024.

Analysis

The justification and substantive evidence provided by the Ukrainian authorities cover all the constitutive elements of Step 13.1.

The overall objective of this reform is to attract investment in the extraction and processing of critical raw materials. The Ukrainian parliament adopted the Law of Ukraine No 4154-IX on Amendments to the National Programme for the Development of the Mineral Resource Base of Ukraine for the Period up to 2030, dated 18 December 2024. The Law entered into force on 17 January 2025.

The aim of the National Programme for the Development of the Mineral Resource Base is to provide highly professional scientific support for all types and stages of geological exploration and to develop state-of-the-art methodologies in line with relevant EU rules and international best practice in the field. This will significantly improve their efficiency and quality and ensure sustainable development.

The Law introduces the State Compensatory Fund for geological area, specifying its budgeting sources. It is expected that implementation of the programme will entail the execution of the measures set out in the Memorandum of Understanding between the European Union and Ukraine on Strategic Partnership in the field of Raw Materials (the MoU) concluded on 13 July 2021.

The Law amends the Code of Ukraine on Subsoil (the Code) on the establishment of the list of minerals of strategic importance and the list of minerals and components of critical importance. New provisions introduced by the Code set out the conditions for including metal ores and non-metallic minerals and their useful components in the lists of the minerals and components of strategic and critical importance.

The Law stipulates that, acting on a proposal from the central executive body, the Cabinet of Ministers will approve: the methodology for including minerals in the lists of minerals of strategic and of critical importance; the assessment of the criticality of the risk of disruption to the supply of relevant mineral raw materials and/or products processed from these mineral raw materials; and recommendations on measures to prevent the risk of disruption in their supply is to be approved by the Cabinet of Ministers upon submission of a proposal by the central executive body.

Cooperation with partner countries is ensured and promoted. The executive body implementing the state policy on geological research will participate in the activities of the Association of Geological Surveys of European Countries. The MoU activities with the EU and agreements with other countries will be implemented as part of the programme.

Commission assessment: satisfactorily fulfilled