Ukraine plans to resume the implementation of the European Union reform program after non-compliance with deadlines forced the EU to reduce the amount of financial payments. This was reported by Bloomberg with reference to the statement of Minister of Economy Oleksiy Sobolev, as reported by UNN.
Details
Ukraine plans to receive 12.5 billion euros under the Ukraine Facility program — a support mechanism aimed at keeping the economy afloat in the fourth year of the war.
We plan to fulfill all conditions
He explained that this is necessary in order to receive the full amount of aid.
The Ukraine Facility program was approved in 2023, and now, according to Sobolev, after two years it should be updated.
We are reviewing in close cooperation with the European Commission, and changes have been prepared for the last three months. We hope the European Commission will approve them by the end of September
Ukraine is heavily dependent on financial support from Western partners, who set conditions: in particular, Kyiv must carry out reforms, including anti-corruption measures.
In July, President Volodymyr Zelenskyy stripped two anti-corruption bodies of their independence, which drew criticism from international partners and led to the first mass protests since 2022. Subsequently, the Verkhovna Rada restored the independence of these institutions.
The EU intends to reduce the next tranche by 1.5 billion euros, as Ukraine in the first quarter did not fulfill 3 of the 16 necessary conditions for a full payment of 4.5 billion. In June, Ukraine requested a partial payment of 3 billion euros, a spokesman for the European Commission said.
Since then, the government has fulfilled 2 of the 3 missed indicators and expects to receive 1.1 billion euros after reporting this to the European Commission along with submitting reports on reforms for the second quarter.
The third condition that has not yet been met concerns the selection of judges for the High Anti-Corruption Court. According to Sobolev, the procedure, developed jointly with European experts, turned out to be too complex: only two out of 200 candidates were selected from 25 judges. The government has already prepared a new bill that should simplify the process.
The number of indicators that Ukraine must fulfill has increased this year from 36 to 51, the minister added, noting that the adoption of certain laws in parliament is a difficult task.
Ukraine wants to revise some requirements, postponing some and accelerating others. If the changes are approved by the European Commission, they will allow Ukraine to complete the program fully and without violating deadlines.
Recall
The Cabinet of Ministers of Ukraine on August 1 voted for changes to the Ukraine Facility plan. The changes concern the postponement of reform deadlines, clarification of wording, and adjustment of financing.