Latest news with #UkraineFacility
Euractiv
9 hours ago
- Business
- Euractiv
EU to suspend €1.5 billion payment to Ukraine
Brussels has proposed freezing €1.5 billion in EU funds to Ukraine after Kyiv fell short on implementing reforms linked to tackling corruption and the rule of law. Ukraine has completed 13 out of the 16 measures previously agreed under the €50 billion Ukraine Facility, which was set up last year to support the war-torn country's reconstruction. This means it will now receive €3 billion instead of the expected €4.5 billion in the next quarterly payout, said European Commission spokesperson Guillaume Mercier. The missed reforms include the failure to pass laws relating to the 'decentralisation' of executive power and the Asset Recovery and Management Agency (ARMA), a body tasked with tracking down assets acquired through corrupt or otherwise illegal means, Mercier said. They also include measures relating to the selection of judges to the country's High-Anti-Corruption Court, he added. The move comes after after President Volodymyr Zelenskyy faced rare EU criticism and the first major anti-government protests since Russia's full-scale invasion in 2022 over sweeping changes to two key anti-corruption bodies. Zelenskyy has since sought to reverse the changes, which sharply increased his office's control over Kyiv's National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO). A bill undoing the reforms is expected to be discussed in parliament later this week. However, the suspension is unrelated to Kyiv's reforms of NABU and SAPO, according to people familiar with the matter. Mercier also noted that Ukraine had itself reported last month that it had failed to implement all of the reforms required to receive the full payout. The €1.5 billion figure – which must still be approved by EU member states – was calculated using a "methodology" agreed by the bloc last year, Mercier said, adding that Kyiv can still receive the money if it completes the reforms within the next twelve months. The news follows Zelenskyy's announcement last week that Kyiv is facing a budget shortfall of $40 billion (€35 billion) this year. The United Nations also recently estimated that rebuilding Ukraine will cost $524 billion (€506 billion) over the next decade, which is nearly three times the country's annual GDP. (de)
Bloomberg
15 hours ago
- Business
- Bloomberg
EU to Make Reduced Aid Payout to Ukraine Due to Lagging Reforms
The European Union plans to reduce a major package of financial support to Ukraine by €1.5 billion ($1.7 billion) after Kyiv said it had been unable to meet all required reform milestones, said a spokesperson of the bloc's executive. The war-ravaged country did not meet three of the 16 targets needed to get a full €4.5 billion payout under the Ukraine Facility, the bloc's financial support mechanism. In June Kyiv therefore requested a partial disbursement of €3 billion, European Commission spokesperson Guillaume Mercier said.
Time of India
2 days ago
- Business
- Time of India
Ukraine aid row: EU withholds $1.7 billion; Zelenskyy's new bill faces internal and external pressure
The European Union has frozen $1.7 billion in aid earmarked for Ukraine after President Volodymyr Zelenskyy signed a bill that weakens the independence of the country's top anti-corruption agencies. The withheld amount represents over a third of the funding set aside by the Union under its Ukraine Facility fund, which was launched last year to support Kyiv's war recovery and its path to EU membership. The move follows what EU officials described as a troubling shift in Ukraine's governance standards. The legislation in question hands greater authority to the politically appointed Prosecutor General over the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO), two key institutions created in the wake of Ukraine's 2014 Revolution of Dignity to fight high-level corruption. The decision sparked the first wartime protests against Zelenskyy's administration, with thousands taking to the streets to demand that the NABU and SAPO remain free from political interference. Under public pressure, Zelenskyy swiftly introduced measures aimed at safeguarding the agencies' independence, but concerns continue to grow. Marta Kos, the EU's Commissioner for Expansion, warned that Ukraine's efforts to exert political control over its top anti-corruption bodies had raised 'serious concerns' within the bloc, New York Post reported. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like China is wooing Malaysia and Indonesia with mega investments. Is the plan working? CNA Read More Undo Although the EU's freeze on funds is not yet final, Brussels has made it clear that the money will only be released once Ukraine realigns with the bloc's anti-corruption benchmarks. Zelenskyy has previously pledged to continue Ukraine's anti-corruption campaign but has grown increasingly critical of the agencies, especially after they began targeting individuals close to his inner circle. Among them is former deputy PM Oleksiy Chernyshov, who was investigated by SAPO. The president initially defended the bill by arguing it was necessary to rid the agencies of 'Russian influence' and to address a backlog of unresolved cases. However, that explanation has done little to ease tensions either within Ukraine or among its allies. British prime minister Keir Starmer also reportedly urged Zelenskyy to reconsider the bill and take concrete steps to address governance concerns, as per the New York Post. Further pressure is mounting from the International Monetary Fund, which has tied its $15.6 billion aid package, to be distributed over four years, to Ukraine's progress on anti-corruption reforms. Kyiv now faces a Thursday deadline to appoint a new head of its Economic Security Bureau in order to maintain eligibility for the IMF programme. Zelenskyy has so far refused to appoint Oleksandr Tsyvinskyi, the official who led the case against Chernyshov, despite a recommendation from an independent commission. The post remains vacant, with no update yet on who might be chosen. As Ukraine continues to fend off Russia's invasion, the controversy over anti-corruption efforts threatens to undermine both foreign confidence and much-needed financial support.
Yahoo
30-05-2025
- Business
- Yahoo
Ukraine Reforms Tracker Weekly — Issue 27
Editor's note: This is issue 27 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from May 19–May 25, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with permission. Ukraine approves roadmap for customs reform planning amid implementation deadlock Ukraine's Cabinet of Ministers, following a proposal by the Finance Ministry, has approved the development of a medium-term action plan for customs reform implementation under the National Revenue Strategy through 2030. The move comes despite mounting criticism from civil society and lawmakers that the government has deliberately stalled customs reform for over five months — specifically by failing to form the selection commission required by law and the International Monetary Fund's financial support program to reboot the State Customs Service. Zelensky submits bill to establish two specialized administrative courts in Kyiv Ukrainian President Volodymyr Zelensky has submitted draft law #13302 to parliament, proposing the creation of a Specialized District Administrative Court and a Specialized Administrative Court of Appeal, both to be headquartered in Kyiv with nationwide jurisdiction. Parliament is set to vote for the draft law in the first reading during the next plenary meetings scheduled for June 3-5. According to the explanatory note, the bill has been prepared to implement the legal framework for launching the two new courts. The proposal follows prior approval by the High Council of Justice, which endorsed the president's initiative to formally establish the courts and begin operational planning. The courts are expected to play a central role in handling public administration and anti-corruption cases, including high-profile disputes involving state institutions. Ukrainian parliament to review bills linked to Ukraine Facility in early June The Verkhovna Rada, Ukraine's Parliament, is scheduled to hold its next plenary sessions from June 3–6, with a legislative agenda that includes several bills tied to the country's commitments under the EU-backed Ukraine Facility program. Among the priority bills: draft law #13165 and alternatives on improving judicial integrity declarations (first reading); draft law #12377 on establishing the fundamentals of national housing policy (first reading); draft law #9363 on the digitalization of enforcement proceedings (repeated second reading); draft law #12374-d on the restart and strengthening of the institutional capacity of the Asset Recovery and Management Agency (ARMA) (second reading). In addition, lawmakers are expected to consider in second reading draft law #13018-d on financial inclusion, which would allow the establishment of banking services via Ukrposhta. While not a binding obligation, the legislation is part of Ukraine's soft commitments under its IMF memorandum. Ukraine projects steady economic growth, slowing inflation through 2028 in budget forecast A draft of Ukraine's medium-term budget declaration, obtained by the Parliament's Temporary Investigative Commission on Economic Security outlines moderate economic growth and a gradual decline in inflation through 2028: Nominal GDP is projected to reach: Hr 10.44 trillion ($251.3 billion) in 2026, Hr 11.92 trillion ($287.0 billion) in 2027, and Hr 13.47 trillion $324.4 billion) in 2028. Annual inflation (Consumer Price Index) is expected to decline from 9.7% in 2026 to 7.1% in 2027, and 5.6% in 2028; End-of-year exchange rate is projected at: 43.7 Hr/dollar in 2025; 44.8 Hr/dollar in 2026; 45.3 Hr/dollar in 2027; 45.8 Hr/dollar in 2028. The draft is part of Ukraine's annual fiscal planning cycle. The Cabinet of Ministers must adopt the declaration by June 1, though figures remain subject to revision in the final version. Read also: Ukraine, US officially launch joint Reconstruction Investment FundWe've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
15-05-2025
- Business
- Yahoo
Ukraine Reforms Tracker Weekly — Issue 25
Editor's note: This is issue 25 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from May 5–May 11, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with permission. Ukraine misses customs reform deadline, jeopardizing IMF commitments Ukraine's government has failed to launch the reboot of the State Customs Service, risking a key International Monetary Fund structural benchmark and putting up to $1.3 billion in international aid at risk. Despite a legal requirement to form a selection commission for the new head of customs by Jan. 1, the Finance Ministry has not acted. According to MP Yaroslav Zhelezniak, the delay is being orchestrated by Finance Minister Serhii Marchenko and the Government Committee led by Economy Minister Yuliia Svyrydenko, reportedly under direct instructions from the President's Office to block the reform. The continued inaction not only violates Ukrainian law but undermines commitments to the IMF, U.S., and World Bank, who have already disbursed funding tied to the reform. The IMF deadline for appointing a new customs chief by end-June 2025 is now considered unrealistic, raising the risk of future funding being withheld. G7 backs ARMA reform bill, but parliament fails to add it to agenda again The G7 ambassadors have voiced support for draft law #12374-d, aimed at overhauling Ukraine's Asset Recovery and Management Agency (ARMA). The bill was developed under the leadership of MP Anastasiia Radina and is required under the EU's Ukraine Facility program. Despite international backing, the bill was not included in this week's parliamentary agenda. Ukraine already missed the March 31 deadline for passage, putting 300 million euros in EU funding at risk. Moreover, ARMA publicly questioned the bill, claiming international partners had raised concerns — an assertion at odds with the G7's public endorsement. Ukraine ratifies U.S. critical minerals agreement, advances supporting legislation On May 12, Ukrainian President Volodymyr Zelensky signed the ratification of the critical minerals agreement between Ukraine and the United States, following unanimous support from all parliamentary factions. Last week, parliament also passed in the first reading draft law #13256, which introduces amendments to the Budget Code to implement the agreement's provisions. Read also: Ukraine, US sign additional agreements for minerals deal, Economy Ministry says We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
