The European Union has decided to cut the amount of the fourth tranche of financial aid to Ukraine under the Ukraine Facility program by €1.45 billion. This is due to the fact that the Ukrainian side has not implemented three out of the sixteen necessary reforms required to receive the full amount.
This is reported by Business • Media
Reasons for the EU Payment Reduction
As reported by European Commission spokesperson Guillaume Mercier, the fourth tranche in 2025 was set to be the largest both in terms of amount and the number of reforms that needed to be implemented. If all reforms had been completed, Ukraine would have received €4.5 billion. However, based on the assessment results, the European Commission recognized that only 13 out of 16 reforms had been completed. Therefore, a proposal to make a payment of €3.05 billion was submitted to the EU Council in August.
“One of the three unimplemented reforms concerns decentralization, another relates to the law on the reform of ARMA, and the third involves the selection procedure for judges to the High Anti-Corruption Court,” Mercier noted.
At the same time, as reported by The New York Times, this decision is not final. Funding may be restored if Ukraine meets the specified performance indicators.
Position of the Ukrainian Government
The Ministry of Economy of Ukraine emphasizes that the country is fulfilling all its commitments to the EU. According to representatives of the ministry, the three currently unfulfilled indicators are in the final stages of implementation. Their completion will allow for the receipt of the remaining €1.45 billion. The Ministry of Economy expresses confidence that Ukraine will receive all planned €12.5 billion under the Ukraine Facility program by the end of the year.