Ukraine may receive €265 million less from the EU due to unmet conditions
On October 30, it was reported that the European Union is proposing to allocate 264.6 million euros less to Ukraine than Kyiv had requested. The reason is that Ukraine has not fulfilled all the conditions for receiving the ninth tranche under the Ukraine Facility program. At the same time, the European Commission took into account the partial fulfillment of one of the requirements and an additional step in the area of nuclear safety, which helped reduce the amount of funds not received.
The European Union is proposing to approve a payment of 8.04 billion euros to Ukraine under the Ukraine Facility program. However, this amount is 264.6 million euros less than what Kyiv had requested.
According to the publication, after accounting for the funds Ukraine has already received as an advance, the actual payment amount will be approximately 7.8 billion euros. The final decision is to be made by the Council of the EU. It is expected by the end of November.
Which conditions has Ukraine fulfilled?
To receive the ninth tranche, the European Commission verified the implementation of 18 steps outlined in the agreements with Ukraine. Of these, 16 were deemed satisfactory. Among the fulfilled requirements are the modernization of the IT system for enforcing court decisions, the adoption of a Human Rights Protection Strategy, and a program to combat human trafficking. Ukraine has also adopted a strategy to reduce state ownership in the banking sector and an Employment Strategy.
Some commitments focused on supporting people in need of additional protection. Specifically, these include investments in education, healthcare, and housing for veterans with disabilities, families of deceased veterans, and internally displaced persons. In addition, among the steps taken were the preparation of an independent assessment of the work of the National Commission for State Regulation in the Energy and Utilities Sectors, the development of electronic identification, and water monitoring measures.
Which two requirements remain unfulfilled
At the same time, the European Commission did not consider two requirements to be fully met. The first concerns the supervisory boards of state-owned enterprises. The second is the adoption of a roadmap for the gradual liberalization of the gas and electricity markets. In the case of supervisory boards, Ukraine was required to appoint governing bodies for state-owned enterprises in which the majority of members are independent. However, such appointments were made in only 10 of the 15 enterprises specified in the requirement.
Therefore, the European Commission considered this step to be partially fulfilled. This made it possible to reduce the amount that Ukraine might have lost due to non-compliance with the conditions. The second issue is the lack of an approved roadmap outlining the gradual opening of the gas and electricity markets to allow for freer competition. This document is intended to define exactly how Ukraine will proceed toward the liberalization of its energy markets.
How Ukraine Managed to Reduce Its Losses
Additional circumstances also influenced the final calculation. In particular, Ukraine submitted a request for a mission by the International Atomic Energy Agency (IAEA) to assess regulations in the field of nuclear and radiation safety. This step is one of the conditions for the future, tenth tranche. However, it was taken into account when assessing Ukraine’s progress, which also influenced the calculation of the payment.
According to “European Truth,” thanks to the partial fulfillment of the requirement regarding supervisory boards and the submission of the request for the IAEA mission, the European Commission proposed paying Ukraine 529.4 million euros more than it would have under a different calculation. As a result, the difference between the amount Ukraine requested and the payment proposed by the European Commission is 264.6 million euros. Without taking these two factors into account, the gap could have reached nearly 800 million euros.
The proposed amount must now be approved by the Council of the EU. A decision is expected by the end of November. Until then, this is merely a proposal from the European Commission and not a final, approved payment.
Ukraine is set to receive 17 billion euros in budgetary support from the European Union by the end of 2026, though these funds will depend on the implementation of necessary reforms. This was stated by European Council President António Costa during a speech at the European Parliament in Strasbourg. He also assured that the EU will participate in financing Ukraine’s needs in 2027 and called on international partners to increase their assistance.
Hungarian Prime Minister Péter Magyar stated that negotiations on Ukraine’s accession to the European Union could take 15–20 years.
President Volodymyr Zelenskyy signed a decree approving the National Human Rights Strategy, which takes into account Ukraine’s course toward European integration. The document is intended to help the state fulfill its obligations within the framework of negotiations on accession to the European Union.
