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[INTERNATIONAL] · Ukraine, Belgium · 7 sources

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European Commission pressures Ukraine to accelerate reforms for financial aid

The European Commission is increasing pressure on Kyiv to accelerate essential legislative reforms to unlock approximately €20 billion in financial assistance. This push comes as Ukraine faces a growing budget deficit and an intensifying war with Russia.

During recent discussions, President Volodymyr Zelenskyy identified a $27 billion gap in the Ministry of Defence budget and noted an additional €32.6 billion shortfall expected next year. To address these needs, Zelenskyy has proposed front-loading a portion of the EU’s €90 billion support loan, originally scheduled for 2027, to 2026. He also suggested utilizing frozen Russian assets as a potential funding source.

Brussels has responded by emphasizing that timely implementation of agreed-upon policy conditions is a prerequisite for further disbursements. Specific demands include new legislation to combat the shadow economy, strengthening fiscal revenues, and bolstering anti-corruption institutions such as NABU and SAPO. While a €2.9 billion payment was recently approved, further funds remain stalled due to the slow pace of legislative progress in the Verkhovna Rada.

Entities

European Commission · European Union · International Monetary Fund · Ukraine · Ursula von der Leyen · Verkhovna Rada · Volodymyr Zelenskyy

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