The EU said Friday it will withhold 1.5 billion euros from a broader 4.5 billion euro package for Ukraine, whose disbursement is contingent on Kyiv meeting good governance and transparency benchmarks. The money is designated for non-military purposes.
While the decision is not yet final, EU officials indicated that funding could be restored if Ukraine meets the required conditions, according to The New York Times. The move represents a significant setback for Ukrainian President Volodymyr Zelensky, who has increasingly relied on European financial assistance amid the Trump administration’s reluctance to provide continued US support for Ukraine’s war effort.
The EU's move to cut funding comes after Zelensky pushed a measure through Parliament to remove the independence of two anticorruption agencies: the National Anticorruption Bureau of Ukraine and the Specialized Anticorruption Prosecutor’s Office. The two agencies have been investigating top officials in the government. Zelensky's actions sparked backlash from foreign leaders and the Ukrainian people, prompting him to submit a new bill to Parliament to restore the agencies' independence.
Further, critics have continually spoken out about certain decisions made by Zelensky's government during the ongoing war, including certain powers exercised under martial law, such as investigating journalists, activists, and opposing politicians. Zelensky's administration has also ousted elected local officials in favor of military administrators.
The EU funding is part of the Ukraine Facility, which was established last year and promises 50 billion euros to the country over three years, intended for repairing war damage. Per the New York Times, European Commission spokesman Guillaume Mercier told reporters on Friday that Ukraine had requested a disbursment last month despite falling short on three of the 16 benchmarks required for the funding to be received. Included was the failure to make appointments to a specialized anticorruption court.
