EU has reduced the tranche for Ukraine due to the failure to implement three reforms

Reduction of EU financial assistance for Ukraine

According to hvylya.net: The European Union will reduce the fourth tranche of financial assistance for Ukraine under the Ukraine Facility program. Instead of the expected 4.5 billion euros, the country will receive only 3.05 billion euros due to the failure to implement important reforms, the European Commission reported.

EC Spokesperson: 'The fourth payment is the largest in terms of amount and the volume of necessary reforms. If all indicators are met, Ukraine would have received 4.5 billion euros.'

Ukraine submitted a request for partial payment of the tranche on June 6. According to an EC representative, Ukraine stated that it had fulfilled 13 out of 16 necessary reforms. The methodology for partial payments involves withholding the amount for 12 months in case of failure to implement reforms.

Unfinished reforms

Among the reforms that remain unfulfilled in Ukraine, one concerns decentralization, while others are related to ARMA and the selection of judges for VAKS.

Government source: 'The payment of the tranche will be delayed until the issues regarding NABU and SAP are resolved and the independence of these bodies is restored.'

Ukraine Facility Program

The Ukraine Facility is a financial instrument of the EU to support Ukraine during the war and post-war recovery. The program provides for 50 billion euros for the years 2024-2027. Ukraine has already received assistance from the EU and can receive another 1.5 billion euros if it meets all the requirements.

During the war and post-war recovery, significant financial support is provided to Ukraine by the EU. However, due to the failure to implement key reforms, the country will receive a smaller tranche of financial assistance than expected, which may complicate its economic recovery.