site.btaParliamentary Budget Committee Approves Bill to Ratify Bulgaria’s Contribution Agreement to the EU for Ukraine Fund

The parliamentary Budget and Finance Committee on Tuesday adopted a bill ratifying the Contribution Agreement between the Republic of Bulgaria and the European Investment Bank (EIB) concerning the EU for Ukraine Fund. 

The non-cash contributions sub-fund enables the allocation of diverse resources, including in-kind support, to meet Ukraine’s most pressing needs and support its economy. The bill was approved with 15 votes in favor and 3 against.

Deputy Finance Minister Metodi Metodiev presented the bill’s rationale.

The EU for Ukraine Fund serves as a temporary bridging mechanism that complements the existing financial instruments of the European Union and other global initiatives in support of Ukraine. Its purpose is to enable EU Member States, the European Commission, and other countries and donors to contribute to Ukraine’s recovery, the explanatory memorandum says.

The fund is financed by EU Member States. Other contributors may include the European Commission, non-EU countries such as those from the European Free Trade Association (EFTA), and private donors. Contributions are voluntary and may be made in the form of cash, non-cash (guarantees), or a combination of both. The Fund comprises two sub-funds: one for cash contributions and another for guarantee-based contributions.

16 EU Member States have signed contribution agreements to date: Belgium (EUR 6 million), Italy (EUR 100 million), Cyprus (EUR 1 million), Denmark (EUR 10 million), Estonia (EUR 10 million), France (EUR 100 million), Latvia (EUR 7 million), Lithuania (EUR 10 million), Luxembourg (EUR 1.3 million), the Netherlands (EUR 52 million), Finland (EUR 5 million), Croatia (EUR 1 million), Spain (EUR 70 million), Poland (EUR 25 million), Slovakia (EUR 5 million), and Ireland (EUR 7 million). The total contributions amount to EUR 410.3 million.

Under the Contribution Agreement, Bulgaria will contribute to the Fund by providing a financial guarantee of EUR 10 million.

The proposed bill does not directly affect the state budget. The State Budget Act of the Republic of Bulgaria for 2025 provides for the issuance of a state guarantee related to Bulgaria’s participation in the EU for Ukraine Fund, up to the BGN equivalent of EUR 10 million, through a contribution agreement and a guarantee agreement with the EIB.

Funds to cover potential activation of the state guarantee will be included in the preparation of future annual state budgets until all guaranteed obligations are fully settled, in accordance with the bill's explanatory memorandum submitted by the Council of Ministers.