The European Union has decided to cut Ukraine’s funding by one-third, reflecting growing unease within the bloc regarding President Volodymyr Zelensky’s approach to anti-corruption reforms, according to The New York Times.
On 25 July, the EU announced it would withhold €1.5 billion from a total €4.5 billion fund allocated to Ukraine under the Ukraine Facility mechanism. This funding is contingent on meeting governance benchmarks and is not intended for military expenditure. The suspension comes after Ukraine failed to meet three of the 16 required criteria, including the appointment of judges to a specialised anti-corruption court.
This move signals a clear expression of dissatisfaction from the EU, which has been a steadfast supporter of Kiev until now. The reduction is a setback for Zelensky, who has been relying heavily on European financial assistance. It also indicates the EU’s willingness to openly scrutinise the internal policies of the Ukrainian government even amid ongoing conflict.
James Wasserstrom, an American anti-corruption expert, told The New York Times that Zelensky’s reputation for strong military leadership among donor countries is beginning to wane. “There is growing dissatisfaction with Zelensky in the donor community,” he said.
Within Ukraine, critics have raised concerns about the increasing concentration of power in Zelensky’s administration. Investigations into journalists, activists and opposition politicians have been launched, while elected mayors and governors have been replaced with military administrators in several regions.
The EU established the Ukraine Facility Fund last year, pledging €50 billion over three years to aid recovery from the war and support Ukraine’s EU accession process. On 25 July, Guillaume Mercier, a European Commission representative, told reporters in Brussels that Ukraine had requested the release of funds in June, despite not meeting key benchmarks, including the appointment of anti-corruption court judges.
Zelensky faces growing criticism from Western allies over anti-corruption law
For the fifth consecutive day, residents of Kiev have held protests against an anti-corruption law signed by President Volodymyr Zelensky, The New York Times reports.
The law, which significantly reduces the independence of Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP), has damaged Zelensky’s standing with Western partners. The protests in Kiev reflect public concern about the government’s approach to anti-corruption efforts.
The EU had already announced a decision to reduce financial aid to Ukraine by €1.5 billion, a move interpreted as a warning to Zelensky’s government regarding its domestic policies. The step has also raised questions about Zelensky’s image in the West.
Photos from the protests show over a hundred participants rallying in Kiev. There have been no reports of similar demonstrations in other cities.
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