Brussels rejected Ukraine’s request for additional financial support this year, demanding that Kyiv implement the promised reforms before receiving further funding from the EU. This is reported by the Financial Times, writes UNN.
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The decision was reportedly made against the backdrop of intensified Russian attacks on Ukraine’s civilian infrastructure, while its parliament is attempting to adopt the reforms necessary to unlock support from the EU and other donors.
The discussion about additional funding arose after Kyiv identified an additional $27 billion in military needs this summer and asked the European Commission to help cover the gap by allocating tranches from the EU’s €90 billion loan, agreed at the end of last year, the publication writes.
Only €15.7 billion of this amount has been paid out this year. The sum was divided into two parts of €45 billion each for 2026 and 2027, partly due to delays in meeting the reform requirements, the publication writes.
"Brussels rejected the request for funding for 2027, instead insisting that Kyiv fulfill the conditions that could unlock around €34 billion in EU support this year," the publication says.
In a joint statement on Thursday, Ukraine and the European Commission said they had "identified means to cover Ukraine’s budgetary and defense needs for 2026. We also confirmed the steps necessary to ensure their timely disbursement."
The reforms Ukraine must carry out to receive the funds include abolishing the VAT exemption for small parcels and introducing new tax rules for digital platforms.
"Both measures were approved by parliament, but they include a controversial amendment that weakens the rules governing politically exposed persons (PEPs), which was an EU requirement for strengthening anti-corruption efforts. If signed into law, this amendment could jeopardize Ukraine’s compliance with the conditions attached to EU funding," the publication says.
European Commissioners Valdis Dombrovskis and Marta Kos wrote a letter to the speaker of the Ukrainian parliament, emphasizing that additional financial assistance for 2026 remains available to Ukraine if it implements the reforms that were requested.
"Avoiding any weakening of Ukraine’s policy framework on politically exposed persons" is "critically important," they wrote in the letter seen by the FT.
In an interview with the FT on Thursday, Zelenskyy denied media reports of tense discussions with European Commission President Ursula von der Leyen over the reform conditions.
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The European Commission, the publication writes, is also assessing Ukraine’s as-yet-unidentified financial needs for 2027, which officials say could amount to around €70 billion in military and budgetary support. The assessment is expected to be presented to EU leaders at a meeting in mid-October.
Ukraine is negotiating with the IMF over further disbursements under its $8 billion program, the review of which is due to be conducted later this year. These disbursements depend on financing agreements with the EU and Ukraine’s other allies, which will help cover Ukraine’s financial needs in 2027, the publication writes.
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