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EU slashes $1.7 billion in aid to Ukraine over corruption concerns

Iran Press TV

Sunday, 27 July 2025 10:46 AM

The European Union has suspended $1.7 billion (1.5 billion euros) in aid to Ukraine, citing concerns over corruption and delays in implementing critical reforms.

The European Union said on Friday that it would withhold 1.5 billion euros from an overall fund of 4.5 billion euros, whose disbursement is dependent on achieving good governance standards and that can't be used for military purchases.

The package is part of a broader 50 billion euros support package approved by the EU to promote Ukraine's macro-financial stability, recovery, and reform efforts.

However, access to portions of this funding was conditioned on meeting specific reform milestones, known as "progress benchmarks."

Among the unmet conditions is the appointment of judges to the High Anti-Corruption Court, a key institution in Ukraine's fight against high-level corruption.

The EU has also expressed concerns over the transparency of the process and the overall pace of reforms in the justice sector.

The move is a significant setback for Ukrainian President Volodymyr Zelensky, who has increasingly relied on European financial assistance amid President Donald Trump's administration's reluctance to provide continued US support for Ukraine's conflict with Russia.

The EU's move to cut funding comes after Zelensky pushed a measure through the Verkhovna Rada (Ukraine's Parliament) to remove the independence of two anticorruption agencies, the National Anticorruption Bureau of Ukraine (NABU) and the Specialized Anticorruption Prosecutor's Office (SAPO).

Zelensky's actions sparked backlash from European leaders and the Ukrainian people and forced him to submit a new bill to Parliament to restore the agencies' independence.

While the move helped calm public protests, it did not affect the EU's decision, which had already been made based on earlier concerns regarding high levels of corruption within Zelensky's administration.

Furthermore, critics have continually spoken out about several decisions made by Zelensky's administration during the ongoing conflict with Russia, including certain powers exercised under martial law, such as suppressing activists, journalists, and opposing politicians.