Ukraine risks losing part of EU aid for first time due to reform delays – European Commission
Ukraine may lose part of its financial aid from the European Union for the first time due to unfulfilled reforms under the Ukraine Facility program, the European Commission reported in response to a query from Radio Free Europe/Radio Liberty.
Specifically, Ukraine has not yet completed two steps related to previous aid tranches that have already been received.
"There are two steps related to the fourth and fifth tranches that were not completed on time. The amounts associated with these tranches have been "suspended." This means they have not yet been disbursed," the European Commission said.
This amounts to nearly EUR 300 million under the fourth tranche and over EUR 380 million under the fifth.
According to a European Commission official, the issues in question concern provisions regarding the increase in the number of staff at the High Anti-Corruption Court and the entry into force of legislation on the review of judges' integrity declarations and the procedures for verifying them.
The final deadlines for fulfilling these conditions are June 30 and September 29, 2026, respectively. If Ukraine fails to meet these requirements on time, the procedure for a final reduction in payments, as provided for in the Ukraine Facility regulations, may be applied.
At the same time, it is noted that the Ukraine Facility mechanism provides for a certain degree of flexibility due to the war.
"A flexibility mechanism was introduced for Ukraine. This was provided for in the regulations-there is some additional time for implementing reforms," the European Commission said.
They also noted that Ukraine, despite the difficult circumstances, is demonstrating "significant progress" in implementing reforms.
The Ukraine Facility program provides for EUR 50 billion in aid to Ukraine through 2027. Disbursements are directly linked to the implementation of reforms and indicators agreed upon between Kyiv and the EU.