Ukraine may lose part of its EU aid due to failure to implement reforms
Ukraine risks losing out on approximately 680 million euros in financial support from the European Union due to its failure to implement some of the planned reforms. These are conditions tied to macro-financial assistance programs, the fulfillment of which is necessary to receive the full amount of funding. In the event of delays or failure to meet the requirements, the country may receive a smaller tranche than previously anticipated.
"There are two steps related to the 4th and 5th 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 deadlines for these two steps are June 30 and September 29 of this year, respectively," he said.
Both steps relate to anti-corruption reforms.
"From the 4th payment request (with a deadline of June 30), the step 'Increasing the staff of the High Anti-Corruption Court' remains unfulfilled, corresponding to nearly 300 million euros. From the 5th (with a deadline of September 29), the remaining step concerns ‘the entry into force of legislation on the review of judges’ integrity declarations and the process of verifying them,’ which corresponds to over 380 million euros,”, the official explained.
On June 8, Ukraine received the seventh tranche under the EU’s “Ukraine Facility.”
In response to a question from a Suspilne correspondent, European Commission spokesperson Guillaume Mercier stated: “Eighteen reforms have been implemented. Eleven of them were related to this specific request. There were also unimplemented reforms from the 5th and 6th payments, as well as reforms for future tranches that have already been proposed by the Ukrainian authorities."
He explained that Ukraine usually has a certain buffer for implementing reforms; even those requirements that were not met on time can be carried over.
What is known about the Ukraine Facility
The Ukraine Facility (UF) is a four-year (2024–2027) EU financial support program worth €50 billion. It is aimed at financing the state budget, economic recovery, stimulating investment, and providing technical assistance for reforms. Funding (€38.27 billion for the budget, €6.97 billion for investments, and €4.76 billion for technical support) is disbursed quarterly upon fulfillment of conditions.
A European Commission official, speaking on condition of anonymity, informed Suspilne of this.
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