EU to deliver nearly €1.35 billion to Ukraine and impose penalties for unfinished reforms
The European Union is taking another crucial step in supporting Ukraine by deciding to allocate the fifth tranche of funding under the Ukraine Facility program.
According to the official documents, including the draft EU Council decision, Ukraine will receive over €1.35 billion, but this payment will be accompanied by additional conditions—penalties for incomplete or delayed reforms.
The total committed financial package amounts to approximately €1.95 billion, with some funds already disbursed from previous tranches.
A notable aspect of this stage is the legislative act on the Asset Recovery Agency (ARMA), adopted in July, which has begun the process of purging inefficient officials from government structures.
At the same time, the implementation of these reforms remains incomplete, with deadlines extended to the end of 2026.
If delays continue, Ukraine risks losing financial support or receiving it partially.
An important requirement is that Kyiv must complete the reform of the digital execution process and amend the declarations of judges’ integrity by the end of Q2 2026; otherwise, EU funding may be restricted or withdrawn altogether.
The approved draft emphasizes the importance of adhering to democratic standards, the rule of law, and human rights, as these are fundamental for continued EU support.
This decision reaffirms that Ukraine’s European integration prospects remain relevant, but effective reforms and political will are essential to meet future EU criteria.