Ukraine, EU: funds are tied to reforms; if Kyiv implements them, we will release 20 billion

Brussels – The European Union is unquestionably standing by Kyiv, but the disbursement of funds is closely linked to the implementation of the agreed reforms, particularly those relating to the rule of law and the fight against corruption. The reminder – which sounds rather imperative – comes from the President of the European Commission, Ursula von der Leyen: “As reforms proceed in the Rada – the Ukrainian Parliament – budget support will also move forward“, she noted on her social media channels. The EU still has “€37 billion  available for this year,” she warned. 

Yesterday (22 September), von der Leyen held a bilateral meeting with the President of Ukraine, Volodymyr Zelensky, on the sidelines of the United Nations General Assembly in New York. According to Bloomberg, the meeting was described as “tense“: on the one hand, the head of the Berlaymont building is said to have reiterated her desire to see continued reforms in the country under attack from Moscow; on the other, the Ukrainians are said to have been outraged by the removal of the sanctions against two Russian oligarchs, decided upon by EU countries yesterday. But von der Leyen is not distancing herself from Kyiv. Rather, she points out that, just as the EU is playing its part, others – including Kyiv on the reform front – must also take action. “Europe is working harder than ever to strengthen Ukraine’s defence,” she emphasised. “My message to every leader is clear: we must all step up our support for Ukraine’s defence.” 

At today’s press briefing (23 September), the European Commission spokesperson, Guillaume Mercier, explained that “as regards Ukraine’s reform agenda,” the Commission is focusing on the “plan for Ukraine” – a document presented in March 2024 by the Ukrainian government which includes structural reforms and investment in sectors with the greatest growth potential, and sets out the planned improvements in public administration, emphasising good governance, respect for the rule of law, and the fight against corruption and fraud. However, Kyiv must keep pace with the implementation of the reforms and, to urge the country to adhere to the timetable, last week the European Commissioner for the Economy, Valdis Dombrovskis, and the European Commissioner for Enlargement, Marta Kos, sent letters to the Speaker of the Ukrainian Parliament, the Rada, and also to the Prime Minister. The reforms, the spokesperson noted, “cover various sectors” such as “general requirements regarding the rule of law and the fight against corruption.” If “they were implemented and adopted in 2026,” “€20 billion in budgetary support could be released,” he noted. 

This year, €37 billion remains available for disbursement under the various European support instruments. The portion earmarked for budgetary support for Kyiv – which is distinct from that for military support – amounts to approximately €20 billion and is entirely contingent upon the adoption of the planned measures. The plan for Ukraine is the reform roadmap that enables Kyiv to access funds from the Ukraine Facility: €50 billion in loans and grants to contribute to thecountry’ss recovery, reconstruction and modernisation.