On 25 July, the European Union froze €1.5 billion worth of aid to Ukraine. The cause was the dissatisfaction of Brussels with reforms to anti-corruption legislation initiated by Volodymyr Zelenskyy.
The bill in question moves two of the country’s most significant anti-corruption agencies: the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO) under the jurisdiction of the Office of the Prosecutor General. The New York Times stated this has caused concern within the European Union, where anti-corruption reform is one of the primary conditions for the continued financing and scheduled accession of Ukraine to the EU.
The above-mentioned assistance fund was established in 2024 on the initiative to allocate €50 billion over the course of three years. These funds were intended to restore Ukraine from a large-scale armed conflict and build state institutions in compliance with European standards. It is crucial that the money should not be used for armed actions, but should be invested in civilian restoration and reforms.
However, according to European Commission representative Guillaume Mercier, Ukraine requested another tranche in June, despite failing to meet three of the 16 established benchmarks. In particular, Kyiv was unable to appoint judges to the High Anti-Corruption Court, an important element of the entire anti-corruption system. The New York Times notes that this may be evidence of the first signs of weakening confidence in President Zelenskyy on the part of Brussels and other EU capitals.
Nevertheless, the withholding of €1.5 billion is not yet final. The EU emphasises that the funding can be unblocked if the Ukrainian side fulfils the necessary conditions.
