EU Cautiously Approaches Financial Support to Ukraine: What’s Behind the Decision
The European Union currently has no intention to unconditionally 'give' Ukraine financial resources, even amid ongoing war conditions. The reason for this stance lies in strict requirements and conditions that member states deem necessary to ensure effective utilization of aid. As stated by Danylo Hetmanetz, head of the Verkhovna Rada committee on finance, taxation, and customs policy, the decision to allocate Ukraine’s fourth macro-financial assistance tranche under the Ukraine Facility program was approved by EU ambassadors without discussion and based on the fulfillment of certain obligations. According to Hetmanetz, this tranche has been reduced compared to what could have been allocated, due to the incomplete fulfillment of three out of 16 indicators set for Ukraine in the first quarter of 2025. Moreover, the financial inflow has been delayed because Ukraine submitted its report and funding request only on June 6, whereas they were expected as early as May. The main reasons are missed deadlines and uneven reform progress, which have impacted the sum and schedule of assistance. Hetmanetz emphasized that EU partners are not willing to support Ukraine with cash without conditions. For European partners, fulfilling commitments within the Ukraine Facility framework is critical, as it concerns not only financial aid but also stability and reforms in the rule of law. Slow reform implementation and unmet indicators have resulted in a loss of nearly 1.5 billion euros and a three-month delay in the next tranche. Furthermore, it is stressed that without passing a package of laws on restoring the independence of NABU and SAP, Ukrainian law enforcement agencies risk losing key independence guarantees and financial support, which would hinder Ukraine’s path towards European standards and stable development.