“Ukraine expects €12.5 billion in EU support amid reports of tranche reductionThe Ministry of Economy of Ukraine states that it has fulfilled its obligations to the EU, expecting €12.5 billion in support for 2025. This comes amid a reduction in the next aid tranche due to reform delays, although Ukraine claims that 13 out of 16 necessary reforms have been completed.
”, — write: unn.ua
Details”Ukraine fulfills its obligations to European partners, even despite the challenges of war. We continue to receive financial support from the EU on terms of transparency and results. And the Ministry of Economy of Ukraine, as the National Coordinator, does everything necessary to ensure the timely implementation of planned steps,” the statement says.
The Ministry of Economy claims that the first quarter of 2025 is the most intensive in terms of the pace of implementation of the Ukraine Plan. Currently, the last three commitments are at the final stage and remain in the focus of the responsible bodies. The Ministry of Economy told at what stages of implementation they are:
- step 4.7 – ARMA Reform – a draft law from the Ministry of Justice of Ukraine. As of now, it has been supported by the Verkhovna Rada of Ukraine as a whole and is awaiting the signature of the President of Ukraine;
- step 9.1 – Entry into force of the law on the reform of executive power at the local level. This draft law from the Ministry of Communities and Territories Development of Ukraine is under consideration in the Verkhovna Rada and is ready for the second reading. This is already the third version, revised with the participation of the public and local self-government bodies. We expect this draft law to be adopted next plenary week;
- step 4.3 – Increasing the composition of the High Anti-Corruption Court (HACC). This refers to the selection of 25 judges (15 – to the first instance, 10 – to the appeal). The selection is carried out by the High Qualification Commission of Judges of Ukraine. The first competition took place, but it turned out to be too difficult and demonstrated the need to improve the selection criteria, for which draft law No. 13114 has already been registered in the Parliament. Competitions continue continuously, and we expect to complete this step within the allotted time.
According to the results of Q1 2025, 3.05 billion euros should be received by the state budget in August due to the implementation of 13 out of 16 steps. It is important that, according to the terms of the Ukraine Facility, Ukraine has up to 12 months to finalize the steps that require more time. Thus, another 1.45 billion euros will be provided after the completion of work on the complex indicators of the first quarter of 2025. The goal for the year – 12.5 billion euros – remains achievable.”
ContextIn comments to media on July 25, European Commission spokesman Guillaume Mercier stated that the next tranche of EU financial aid to Ukraine under the Ukraine Facility mechanism would be smaller than planned due to Kyiv’s inability to complete key reforms.
Ukraine planned to receive 4.5 billion euros ($5.2 billion) as the fourth tranche, the largest to date, but will instead receive 3.05 billion euros ($3.5 billion).
The reduction followed Ukraine’s request for a partial payment on June 6, claiming it had completed 13 of 16 required reforms.
“The Commission has assessed the 13 completed reforms and proposes to the Council to allocate 3.05 billion euros as the fourth payment under the Plan for Ukraine,” Mercier said.
It is noted that the remaining unfulfilled reforms concern decentralization, the appointment of judges to the High Anti-Corruption Court, and the law on reforming the Asset Recovery and Management Agency.
Mercier added that, according to the EU’s partial payment policy, funds related to unfulfilled benchmarks can be paid later if the reforms are completed within 12 months.
The loan program for Ukraine was approved in February 2024 as a four-year program providing 33 billion euros ($36 billion) in loans and 17 billion euros ($18 billion) in grants to stabilize Ukraine’s economy and support post-war recovery.
The Plan for Ukraine serves as a roadmap for reforms linked to the country’s EU accession process, covering governance, rule of law, reconstruction, and economic modernization.
AdditionOn July 16, European Commission President Ursula von der Leyen stated that the EU intends to allocate an additional 100 billion euros ($115 billion) to Ukraine from its long-term budget for 2028–2034, which will double the current budget of the Ukraine Assistance Mechanism.