Ukraine may lose EU aid over missed reform deadlines

According to the European Commission, Ukraine could lose nearly €700 million in financial assistance from the European Union after failing to meet several reform deadlines.

This would be the first time Ukraine forfeits part of the support allocated under the Ukraine Facility program, with officials in Brussels highlighting that key reforms have not been completed on time, News.Az reports, citing UAWire.

A European Commission representative said that Ukraine has yet to fulfill two critical stages linked to previous tranches of aid that Kyiv has already received.

“There are two steps related to the fourth and fifth tranches that weren’t completed on time. The sums connected to these tranches have been ‘suspended.’ This means they haven’t yet been paid out,” the spokesperson explained.

Specifically, 300 million euros under the fourth tranche and over 380 million euros under the fifth are currently at risk. The Commission outlined the areas where Ukraine fell short:

- Increasing the number of staff at the High Anti-Corruption Court as required under the fourth tranche

- Enacting legislation for reviewing judges’ integrity declarations and the procedures for their verification as part of the fifth tranche

The deadlines to meet these requirements are June 30 and September 29, respectively. The European Commission warned that if the conditions are not met on time, Brussels could take steps to permanently cut these payments. However, the Commission noted that there are flexibility measures in place given the ongoing war.

“For Ukraine, a flexibility mechanism was introduced,” officials said. “This is provided for by the regulations - there is certain additional time allowed to implement reforms.”

Despite the missed deadlines, the Commission acknowledged that Ukraine is showing “substantial progress” in implementing reforms, even under challenging circumstances.

Earlier reports indicated that to receive the first installment of a 90 billion euro credit line, Ukraine must meet a series of tax requirements, including new regulations for taxing digital platforms.

News.Az 

By Ulviyya Salmanli