The EU has tied additional financial aid to Ukraine to reforms, according to Bloomberg
The European Union expects Ukraine to make progress in passing legislation before providing additional financial support. Specifically, this involves combating the shadow economy, increasing tax revenues, and aligning Ukrainian legislation with EU standards.
According to the publication, a tense meeting between Ukrainian President Volodymyr Zelenskyy and European Commission President Ursula von der Leyen took place on September 22 at the UN headquarters in New York.
During the meeting, the Ukrainian side expressed concern about a possible escalation by Russia this winter and insufficient air defense capabilities to protect Ukrainian cities.
Kyiv also expressed dissatisfaction with the EU’s decision to lift sanctions against two Russian oligarchs as part of an agreement to extend restrictive measures.
At the same time, Volodymyr Zelenskyy and Ursula von der Leyen discussed Ukraine’s financial stability for this year and next. The President of Ukraine thanked the EU for its decision to provide a 90 billion euro loan and stated that Kyiv is fulfilling its related obligations.
After the meeting, Ursula von der Leyen wrote: “Additional defense support is on the way. And as reforms move forward in the Verkhovna Rada—additional budgetary support will follow. We still have 37 billion euros at our disposal this calendar year.”
According to Bloomberg, the EU expects the Verkhovna Rada to pass a series of laws necessary for further financing of Ukraine. Among the priorities cited are combating the shadow economy, increasing budget revenues, and further aligning Ukrainian legislation with EU standards.
Separately, Volodymyr Zelenskyy discussed the necessary legislative changes with IMF Managing Director Kristalina Georgieva. The Office of the President noted that the Verkhovna Rada has already adopted some of the relevant decisions, and the remaining laws necessary for financial support are scheduled to be adopted by the end of the year.
Ukraine has appealed to its partners for help in covering an unforeseen budget deficit of approximately 26 billion euros and has called on the EU to expedite the disbursement of a 90-billion-euro loan.
At the same time, the European side has reservations about some of Ukraine’s calculations and proposes involving other partners—specifically Canada, Norway, and Japan—in providing additional funding.
According to Volodymyr Zelenskyy, the Ukrainian and European teams are set to hold another meeting in 7–10 days to continue negotiations.
Following a meeting with U.S. President Donald Trump, Volodymyr Zelenskyy stated that Ukraine is ready for an energy truce with Russia as a first step toward a broader cessation of hostilities.
According to the Ukrainian president, Kyiv is ready to halt strikes on Russian energy facilities if Moscow also stops attacking Ukrainian energy infrastructure. Zelenskyy said he asked Trump to convey this position to the Russian side.
The Ukrainian president also called for Chinese leader Xi Jinping to be included in the relevant consultations, since, according to Zelenskyy, he has influence over Moscow.
The meeting between Volodymyr Zelenskyy and Donald Trump took place on September 22 in New York on the sidelines of the 81st session of the UN General Assembly. In particular, the two leaders discussed possible steps toward de-escalation and support for Ukraine ahead of winter.
Bloomberg reported this, citing a source familiar with the negotiations.
Ukraine could lose a significant portion of the projected $29.5 billion in international funding if lawmakers fail to pass the necessary bills by the specified deadlines. Prime Minister Serhiy Koretsky has set deadlines for votes in the Verkhovna Rada, and further financial assistance from partners depends on meeting these deadlines.
Ukraine received a list of reforms from the EU in response to its request for funds.
Ukraine will soon receive $841 million in budget support from the World Bank. The funds will be used to offset state budget expenditures related to pension payments, and the Canadian government will provide financing guarantees.
