EU to Partially Withhold Ukraine Aid Over Missed Reform Targets
The European Union will reduce its next aid payment to Ukraine by €1.5 billion after Kyiv failed to meet all reform milestones required under the Ukraine Facility, the bloc’s main financial support mechanism for the country, The Gaze reports, citing Bloomberg.
According to European Commission spokesperson Guillaume Mercier, Ukraine requested a smaller disbursement of €3 billion in June, after acknowledging it had completed only 13 of the 16 conditions necessary to receive the full €4.5 billion tranche. Once EU member states approve the decision, this will mark the first time the EU delivers a partial payment to Ukraine under the program.
The unmet reforms involve decentralizing executive power, improving asset recovery procedures, and refining the selection process for judges in the High Anti-Corruption Court. Ukraine has another year to fulfill these remaining conditions, Mercier noted.
The news comes at a politically sensitive time, following President Volodymyr Zelenskyy’s move to reduce the independence of two key anti-corruption bodies—an action that sparked sharp criticism from Western partners and led to the largest protests in Ukraine since Russia’s full-scale invasion.
Zelenskyy has since proposed legislation aimed at restoring the independence of the agencies, with a parliamentary vote expected later this week.
EU officials emphasized that the decision to reduce the aid payout is not a direct reaction to Zelenskyy’s controversial anti-graft maneuver. However, the bloc remains deeply concerned about any changes to Ukraine’s anti-corruption legislation and is monitoring Kyiv’s next steps closely.
As The Gaze informed earlier, the EU will reduce Ukraine’s fourth tranche under the Ukraine Facility from the planned €4.5 billion to €3.05 billion because only 13 of 16 required reforms have been completed.
The EU has also begun to emphasize the need for reforms, in particular the appointment of the head of the Bureau of Economic Security, and warns Ukraine of the consequences if anti-corruption changes are not resumed.