This Grant Agreement is an international treaty governing the provision of non-repayable financial assistance by France in the amount of EUR 71 million for the reconstruction of Ukraine’s critical infrastructure. The funds are earmarked for financing projects in the sectors of energy, healthcare, water supply, agriculture, demining, and digital technologies. The Agreement provides for a mechanism for selecting projects through an open competition and their subsequent approval by a special Project Support Committee. An important condition is that the grant must be used primarily for the procurement of French goods and services, while the share of goods and services from Ukraine or third countries may not exceed 50%.
**Structure and Main Provisions:**
The Agreement consists of 14 articles defining terminology, objectives, selection procedures, financial terms, anti-corruption measures, and tax exemptions. It is a continuation of the cooperation initiated by the “Ukraine Fund I” and establishes clear timeframes: contracts must be accepted for execution by December 31, 2026, and the disbursement of funds must be completed by December 31, 2029. Compared to previous arrangements, this document details the procedure for interaction with *Bpifrance Assurance Export* and establishes stricter requirements for social and environmental responsibility.
**Key Aspects for Practical Use:**
1. **Tax Exemptions (Article 11):** Grant funds may not be used to pay taxes and duties. At the same time, goods and services financed under the Contract are exempt from all taxes, levies, and customs duties within the territory of Ukraine, which is critical for project budgeting.
2. **Registration Procedure (Article 5):** All projects must be promptly registered with the Secretariat of the Cabinet of Ministers of Ukraine as international technical assistance, which is a mandatory condition for their implementation.
3. **Advance Payments (Article 4):** French suppliers receive an advance payment in the amount of 10-20% of the contract value, which ensures a quick start to the work.
4. **Anti-Corruption Compliance (Article 8):** The Agreement contains direct obligations of the parties regarding the fight against corruption. Any suspicion of misconduct may be grounds for suspending funding or refusing to perform the contract, which requires a high level of transparency from Ukrainian beneficiaries during procurement.
