The EU plans to freeze part of the funds allocated to Ukraine pending necessary reforms, a European Commission spokesperson has announced, marking the first time such action is being considered.
The financial aid granted to Ukraine by the EU is conditional upon the implementation of certain reforms, particularly those related to upholding the rule of law. For the next tranche of €4.5 billion, Ukraine was required to achieve 16 milestones in its reform agenda. However, Kyiv informed the EU that delays occurred with three of these reforms, and requested a partial disbursement of €3 billion by the end of June.
EU Member States must still approve the decision to freeze the remaining funds. Should they do so, it will be the first time Kyiv receives only part of the allocated funds since the ‘Ukraine Facility’ was established last year. This mechanism aims to provide up to €50 billion in support to Ukraine between 2024 and 2027.
Ukraine has another year to complete the three remaining reforms, according to the European Commission spokesperson. These reforms include decentralising executive power, reforming asset-seizure mechanisms, and selecting judges for the highest anti-corruption court.
The spokesperson also clarified that this procedure was unrelated to the controversial easing of anti-corruption legislation approved by Ukrainian President Volodymyr Zelenskyy last week. While this caused “significant concern” in Brussels, the decision to freeze the funds predates the new law.
Meanwhile, Zelenskyy has announced plans to present a new proposal to parliament aimed at “ensuring the independence of institutions.”
