EU Cuts Ukraine Aid Over Corruption Concerns

The next tranche of EU financial assistance to Ukraine under the Ukraine Facility mechanism will be smaller than planned due to Kyiv's failure to complete key reforms, European Commission spokesperson Guillaume Mercier said on July 25.

Ukraine had aimed to receive 4.5 billion euros ($5.2 billion) in the fourth installment, the largest so far, but will instead receive 3.05 billion euros ($3.5 billion).

The reduction follows Ukraine's request on June 6 for a partial payout, claiming to have completed 13 of the 16 required reforms.

"The Commission has assessed 13 reforms completed and is proposing to the Council to disburse 3.05 billion euros as the fourth payment under the Ukraine Plan," Mercier said.

The remaining unfulfilled reforms concern decentralization, judicial appointments to the High Anti-Corruption Court, and a law reforming the Asset Recovery and Management Agency.

Under the EU's partial payment policy, funds tied to unmet benchmarks may be disbursed later if reforms are completed within 12 months, Mercier added.

The Ukraine Facility was approved in February 2024 as a four-year program providing 33 billion euros ($36 billion) in loans and 17 billion euros ($18 billion) in grants to stabilize Ukraine’s economy and support post-war recovery.

The Ukraine Plan serves as the reform roadmap tied to the country's EU accession process, covering governance, rule of law, reconstruction, and economic modernization.

On July 16, European Commission President Ursula von der Leyen said that the EU intends to allocate an additional 100 billion euros ($115 billion) for Ukraine from its long-term 2028–2034 budget, doubling the current Ukraine Facility budget.