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The European Union has reduced its latest tranche of financial aid to Ukraine by nearly €1.5 billion, citing Kyiv’s failure to implement key reforms and mounting concerns over political interference in anti-corruption agencies.
The cut was confirmed on Friday under the €50 billion Ukraine Facility program, which spans through 2027 and aims to support the country’s war response, reconstruction, and EU accession. Instead of the €4.5 billion requested, only €3.05 billion will be transferred.
EU officials said Ukraine had not fulfilled several promised reforms, including in decentralization, the selection of judges for the High Anti-Corruption Court, and restructuring of the Asset Recovery and Management Agency (ARMA).
The funding freeze comes amid a political storm over President Volodymyr Zelensky’s recent attempt to weaken anti-corruption agencies — a move that triggered rare nationwide protests.
Then on July 24, Zelensky unexpectedly reversed course and submitted a bill designed to restore the independence of the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO). His earlier legislative push had aimed to bring those bodies under executive control, prompting backlash from civil society and international partners.
The agencies are currently investigating figures close to Zelensky’s inner circle, including top officials from the Presidential Office led by Andriy Yermak. While Zelensky initially defended the earlier proposal as a wartime necessity to eliminate alleged Russian influence, critics say the justification failed to withstand scrutiny.
European Commission President Ursula von der Leyen spoke with Zelensky on Sunday and urged him to ensure the independence of Ukraine’s anti-corruption institutions. “Ukraine has already achieved a lot on its European path. It must build on these solid foundations and preserve independent anti-corruption bodies, which are cornerstones of Ukraine’s rule of law,” she wrote on X.
Following their call, Zelensky also posted a statement saying he shared the European Commission’s vision and thanked it for its expertise. “It is important that the bill is adopted without delay, as early as next week,” he added.
“Crucial among the conditions is the independent oversight of fund usage by anti-corruption agencies,” said on Monday Green MEP Daniel Freund, a member of the European Parliament’s anti-corruption intergroup. “If this independence – as happened last week – is restricted, then the planned funds cannot be disbursed as intended.”
Freund, who visited Ukraine shortly before the reversal, warned that the suspension of funds could threaten Ukraine’s EU path. “This endangers Ukraine’s European accession prospects, because without effective and independent anti-corruption efforts, the accession criteria cannot be fulfilled,” he told OCCRP.
Kyiv now has up to 12 months to pass the required laws to unlock the remaining funds. Brussels has made clear that future tranches will hinge on credible, irreversible reforms and an end to executive encroachment on independent oversight bodies.
