EU Reduces Ukraine Aid Over Missed Reforms

The European Union has reduced Ukraine's fourth tranche of financial aid under the Ukraine Facility from the planned €4.5 billion to €3.05 billion due to Kyiv's failure to complete three of sixteen required reforms, including decentralization, judicial appointments to the High Anti-Corruption Court, and restructuring of the Asset Recovery and Management Agency. This marks the first public reduction of EU support to Ukraine since the Russian invasion, signaling heightened scrutiny. President Zelenskyy has not commented on the aid cut, which coincides with recent domestic protests over anti-corruption efforts and growing concerns from Western donors. The EU has stated that the withheld funds may be restored if Ukraine completes the outstanding reforms within 12 months. The Ukraine Facility, approved in 2024, is a €50 billion program designed to support Ukraine's economic stability and EU accession reforms through 2027. The reduced payment of €3.05 billion is expected to be delivered by the end of summer 2025.