EU will not provide Ukraine with additional funds until promised reforms are implemented – FT

Brussels has rejected Ukraine's request for additional financial support this year. The European Union is demanding that the Ukrainian authorities first implement the promised reforms in order to unlock further funding.

Source: Financial Times

Details: In the summer, President Volodymyr Zelenskyy estimated Ukraine's additional defence needs at US$27 billion. The government asked the European Commission to help cover the shortfall by releasing funds early from the two-year Ukraine Support Loan programme worth €90 billion.

The loan is intended to cover Ukraine's financial needs in 2026-2027. The programme provides for up to €45 billion in annual funding, subject to the implementation of reforms. However, Ukraine has received only €15.7 billion this year because of delays in implementing these reforms.

Brussels has rejected a request for early disbursement of the funds earmarked for 2027. Instead, the EU is insisting that the Ukrainian government fulfil its commitments, which would unlock around €34 billion in support before the end of this year. These include scrapping the exemption for small international parcels and introducing new tax rules for digital platforms. The European Commission also separately stressed that Ukraine must not backtrack on previously implemented commitments, citing as an example the easing of requirements concerning politically exposed persons (PEPs).

European Commissioners Valdis Dombrovskis and Marta Kos stressed in a letter to Verkhovna Rada Chairman Ruslan Stefanchuk that additional assistance for 2026 is still available if the necessary reforms are implemented.

Background:

• Prime Minister Serhii Koretskyi said that Ukraine risked losing part of the US$29.5 billion in international funding because of delays in the required votes.
• During a meeting with European Commission President Ursula von der Leyen on 24 September, Ukrainian President Volodymyr Zelenskyy said that because of the war, the Verkhovna Rada (Ukrainian parliament) was unable to operate as normal and swiftly adopt all the necessary legislation. The European Commission stressed in response that access to funding depended solely on the timely implementation of reforms.
• At a meeting of the Ukraine Donor Platform in Brussels on 29 September in Brussels, EU Commissioner for Enlargement Marta Kos said that the Ukrainian government, the Verkhovna Rada and other institutions must join forces to advance the reforms necessary for Ukraine's European future and to secure European funding.
• On 1 October, the European Commission and Ukraine said they had identified ways to cover Ukraine's budget and defence needs for 2026, as well as the steps required to ensure the timely provision of the relevant funding.

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Originally reported by Ukrainska Pravda by Ivan Diakonov. Read the full story at the source.