The European Union said it would withhold EUR 1.5 billion from a planned tranche of EUR 4.5 billion, the release of which is conditional on meeting good governance standards and which cannot be used for military purchases. Withholding aid was common before russia's invasion, and the current decision signals the bloc's new willingness to issue warnings to the government of President Volodymyr Zelenskyy.
However, the EU's decision is not final, and funding could be restored if Ukraine meets certain benchmarks.
"President Volodymyr Zelenskyy's anti-corruption policies have already sparked the first anti-government protests in Ukraine since russia's 2022 invasion. Now, it looks like they could cost the country some of its foreign aid from the European Union, a clear rebuke from a bloc that was once its staunch ally," the publication noted.
Zelenskyy has not yet commented publicly on the aid cuts. The NYT noted that it was a step back for the Ukrainian President, who depends on European financial support to fill the gaps left by the Trump administration's refusal to fund Ukraine's military efforts.
While withholding Western aid to spur reforms was common before russia's invasion, the EU's current decision signals a new willingness by the bloc to place restrictions on Zelenskyy's government over domestic policy during the war. It also raised questions about whether "the glow" around Mr. Zelenskyy is beginning to fade among Ukraine's Western allies.
"Both agencies - the National Anti-Corruption Bureau of Ukraine and the Specialized Anti-Corruption Prosecutor's Office - were investigating top ministers in Zelenskyy's government. The President's decision to "shoot them in the knee," although reversed, sparked accusations of nepotism that jeopardized support from civil society groups at home and Western countries that are financing the war," the publication wrote.
In addition, this year an independent commission selected Oleksandr Tsyvinskyi, the lead detective in the case of Ukrainian Vice Prime Minister Oleksii Chernyshov, to head the financial crimes investigation unit of the Economic Security Bureau. But Zelenskyy's government declined to appoint Tsyvinskyi, leaving the vacancy open. Filling the position by the end of July is a condition for the International Monetary Fund to continue providing aid.
As a reminder, the head of the Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, informed that the EU will allocate EUR 3.05 billion to Ukraine within the framework of the Ukraine Facility, which is 1.45 billion less than planned.
He specified that there will be less funds because 3 out of 16 indicators with a deadline in the first quarter of 2025 have not been fulfilled. In addition, the tranche will arrive later because Ukraine submitted a report on the results of the implementation of the Plan for the Ukraine Facility and a request for funding not in April, but only on June 6.
As Ukrainian News Agency earlier reported, on July 24, President Volodymyr Zelenskyy submitted to the parliament for approval bill No. 13533 on strengthening the powers of the NABU and the SAPO.
This happened against the backdrop of days of protests against the adoption of bill No. 12414, which reduces the independence of anti-corruption bodies. It was adopted on July 22 and signed by the head of state on the same day.
On July 25, Parliament Speaker Ruslan Stefanchuk announced that MPs will gather to consider bill No. 13533 next Thursday, July 31.
Ambassadors from the G7 countries (the United States, Great Britain, France, Germany, Italy, Canada, and Japan) have already welcomed the Ukrainian authorities' decision to restore the independence of the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO).
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