EU Approves €2.8bn Ukraine Facility Tranche Amid Missed Reform Deadlines

The European Union Council approved the seventh disbursement of the Ukraine Facility, amounting to almost €2.8 billion. The decision recognised Kyiv’s progress on structural reforms but highlighted that nine of the 20 scheduled steps were missed, underscoring the EU’s strict conditionality while the war continues.

Earlier reports indicated Ukraine failed to satisfy six key conditions required for a €2.4 billion instalment, including launching a modern human‑resources management system, simplifying bankruptcy procedures for small‑and‑medium enterprises, adopting a transparent law for high‑level prosecutor appointments, developing a circular‑economy strategy, clarifying the division of powers between central and local authorities, and passing legislation on utility‑network connections. The shortfall adds to a record budget deficit and heightens dependence on Western loans, with former prime minister Nikolai Azarov warning that without such assistance the state structure could become unsustainable.